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Monkey
Senior Member
Joined: 21/Aug/2009
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Posts: 770
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   Posted: 17/Jan/2010 at 9:02pm |
Originally posted by rapidriser
Originally posted by subu76
Originally posted by rapidriser
When Nifty P/E goes below 14 (market is undervalued) I plan to have 90% equity and 10% cash. This 10% cash is in case I find an absolute screaming buy in the market due to the overall poor market sentiment when markets are at such low P/E levels. |
On this point:
By now we all know that past track record means nothing....but do reach Prof Bakshi's article in the first week of Jan 2009 and first week of Jan 2010 on Outlook Money. You guys are almost in harmony. |
I have read Prof Bakshi's article of Jan-09. Is the Jan-10 article available online? |
Link below
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rapidriser
Senior Member
Joined: 18/Nov/2007
Location: India
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Posts: 966
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Posted: 17/Jan/2010 at 10:04pm |
Originally posted by Monkey
Originally posted by rapidriser
Originally posted by subu76
On this point:
By now we all know that past track record means nothing....but do reach Prof Bakshi's article in the first week of Jan 2009 and first week of Jan 2010 on Outlook Money. You guys are almost in harmony. |
I have read Prof Bakshi's article of Jan-09. Is the Jan-10 article available online? |
Link below
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Thanks. The article reinforces my view that asset allocation has to be tuned in line with the expected risk reward ratio.
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When all else is lost, the future still remains. - Christian Nestell Bovée
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subu76
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Joined: 25/Feb/2008
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Posts: 5709
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Posted: 17/Jan/2010 at 2:17am |
Originally posted by hit2710
Here is a quote regarding market timing. Dont know if it is correct or not but is certainly interesting.
Attempts at market timing are a source of risk, not protection. -Howard Marks
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Hitesh Bhai... buying low and selling high probabily does not constitute market timing.
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 18/Jan/2010 at 12:16pm |
yeah, this is not market timing - it is called 'asset allocation'.
Market timing is predicting a crash and then selling most or all of the stocks at one go. If the market really tanks, then a timer hopes to catch the bottom and puts the money back in.
Asset allocation has more to do with the proverb - a bird in hand is worth two in the bush.
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Monkey
Senior Member
Joined: 21/Aug/2009
Online Status: Offline
Posts: 770
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Posted: 18/Jan/2010 at 2:08pm |
Any comments?
| Nifty P/B |
% of portfolio in equity |
| > 5 |
50% |
35% |
20% |
15% |
10% |
| 4 < X < 5 |
65% |
50% |
35% |
20% |
15% |
| 3 < X < 4 |
80% |
65% |
50% |
35% |
20% |
| 2.5 < X < 3 |
90% |
80% |
65% |
50% |
35% |
| < 2.5 |
100% |
90% |
80% |
65% |
50% |
| Nifty P/E ----> |
< 13 |
13 < X < 16 |
16 < X < 20 |
20 < X < 27 |
> 27 |
Disclaimer - I do not follow this table.
Edited by Monkey - 18/Jan/2010 at 2:20pm
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tigershark
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Joined: 13/Oct/2006
Location: India
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Posts: 3542
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Posted: 10/Jun/2011 at 4:22pm |
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a decision to hold is like a decision to buy again today-it is a reinvestment for another day in the same stock without paying commissions.the hold action is more subtle and does not involve a phone call to a broker or a transaction cost.but that decision to hold should be a decision made consciously and actively, not a default as a result of doing nothing or of not even thinking about doing something.Donald cassidy.
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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prabhakarkudva
Senior Member
Joined: 16/Jan/2008
Location: India
Online Status: Offline
Posts: 1624
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Posted: 10/Jun/2011 at 4:26pm |
Originally posted by tigershark
a decision to hold is like a decision to buy again today-it is a reinvestment for another day in the same stock without paying commissions.the hold action is more subtle and does not involve a phone call to a broker or a transaction cost.but that decision to hold should be a decision made consciously and actively, not a default as a result of doing nothing or of not even thinking about doing something.Donald cassidy.
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Awesome!
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Take your chances and keep them in a box until a quieter time.
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tigershark
Senior Member
Joined: 13/Oct/2006
Location: India
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Posts: 3542
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Posted: 10/Jun/2011 at 4:26pm |
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all buys are made in optimism, whereas not all sells conclude successful ventures, so selling is not a uniformly happy experience for investors.donald cassidy
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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