Irrespective of what RJ or SS says or whether they are bullish or bearish, one should invest regularly in the business one understands, in the stocks where they find value for a long term and even common people should do well in the markets.
Most of the analysts,bulls/bears in the market have vested interest with their words and actions.
I back you 100 p.c. At the very end, we are responsible for our own wealth creation. we as individual investors will do better if we back your stocks rather than keep our fingers crossed and sell when it is the time to buy and dream big when its time to sell.
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Posted: 21/Apr/2008 at 9:30am
I was actually surprised to see RJ make such time bound predictions. How could he put a figure on those timelines. Then I realised that he must be putting the US Dow Jones charts on India and extrapolating:
From 1982 to 1987 US had a big Bull market. We had it from 2003 to 2008
On 19th October 2007 US had the biggest crash when the Dow fell 22% in one day or some 522 points. Thereafter fom 1987 to 1990 US markets did nothing and that is what RJ expects Indian markets to do.We crased in Jan this year.
From 1970 to 1982 US markets were sideways and were we from 1992 to 2004!
If you see the Dow Jones charts for the period 1970 to 2000 it looks like the sensex in the initial stages of that run. Hence that inference.
It seems quite unlike RJ to put such thoughts into practice.
Edited by basant - 21/Apr/2008 at 9:36am
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Posted: 21/Apr/2008 at 10:26am
Originally posted by kanagala
I am waiting for pull back to invest more. Most of the stocks are moved above my comfort level. I will sit tight with my existing investments. If i am not gong to get the opportunity to invest more in stocks, what are the other liquid investments where one can expect 10% returns?
Not always your investments will keep giving you the same yields in a straight line . The "enormous" gains in the boom time will be offset by the little gains / losses during bearish times .That is the reason you see even great legends like Buffet have a CAGR of around 27-29% .
So if you are an investor them best is to pick some good stocks ( good businesses ) at a very low price ( mostly available during bearish times ) and allow their value to unlock after some time .You need not be active always in the market as an investor .
If you are a trader / speculator then best is to use these sideways movement to involve in trading .
To achieve satisfactory investment results is easier than most people realize ; to achieve superior results is harder than it looks .
Benjamin Graham.
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Posted: 21/Apr/2008 at 10:28am
I raise that slogan to business models not to market patterns!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Posted: 21/Apr/2008 at 11:20am
Not surprisingly whatever stocks were mentioned in yesterday's interview are up today. ATFL is up some 9% today but in the last 5 years it has barely been a three bagger. These sort of things happen quite frequently - gulliable investors buying stocks after hearing it from the Bull's mouth but with volumes of less then 10k I am not sure if this is indeed genuine serious buying.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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