Originally posted by subu76
Hi Vivek,
I have this thesis....correct me if I'm wrong.
Energy prices will rise for a long time at varying rates and with varying fluctuations given that energy sources are relatively limited and consumption is growing.
Will it be possible to form any such secular theories on tea prices?
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........But can you therefore hypothesize that Energy stocks will continue to rise for a long time at varying rates and with varying fluctuations?
Stocks( I mean stock prices) dont map the commodities in entirety. The direction may be identical in most of the cases but magnitude is not. Tell me, Jayshree Tea and Mcleod fell 40 p.c from their peak, but have tea prices fallen 40 p.c.???Similarly, from the bottom these stocks rose almost 8 times, but did tea prices rise 8 times?
That again makes me go to the first point I mentioned.....look for good business at cheap enough entry rates. And dont forget, tea prices dont have too much of a speculative element....therefore chances of it falling like a rock is very remote, until and unless it shoots up like a rocket first.
Also, I dont know whether one should look at tea like a necessity or a luxury....but if you do take it as a necessity, these stocks wont falter in the long run.
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