If you keep listening to these analysts and their levels, it'll take nowhere - they will go on quoting "a very crucial support level" each time. It all looks like a big joke.
Mr Dooms has already announced 6k on sensex as a good entry point for Indian markets.
Someone’s sitting in shade today because someone planted a tree long time ago.
If you keep listening to these analysts and their levels, it'll take nowhere - they will go on quoting "a very crucial support level" each time. It all looks like a big joke.
Mr Dooms has already announced 6k on sensex as a good entry point for Indian markets.
Joined: 19/Feb/2008
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Posted: 03/Jul/2008 at 6:03pm
I read somewhere that a rule of thumb is to have a PE equal to the growth rate. So a P/E of 20 for the sensex implies a growth of 20 and now the PE is lower on account of an anticipated drop in earnings growth.
Would this make sense?
Beware the Black Swan. It may be lurking down the corner. Technical Analysis may help you find it in a hurry!
Joined: 29/Dec/2007
Location: India
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Posted: 03/Jul/2008 at 7:02pm
If the earnings yield on the index is somewhere close to a 1 year bank FD ...it would give some comfort to buy ...which would mean at expected 09 earnings of 1000 for the index the current earnings yield would be 7.7 taking the index as 13000..but again this a rough thumb rule ...at the end I would still prefer to look at individual companies rather than the index.
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Posted: 03/Jul/2008 at 7:10pm
No one is looking at sensex earnings the whole world is waiting for crude to burst. It does make sense to make an occassional visit to the fundamentals but that is not what markets are meant to do all the time.
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Joined: 19/Feb/2008
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Posted: 03/Jul/2008 at 7:27pm
Could anybody answer my PE question? Would that be a correct assesement? If so, fundamentals even at a lower EPS growth would indicate that any fall from here would be only on account of technical factors/ market capitulation for certain.
Beware the Black Swan. It may be lurking down the corner. Technical Analysis may help you find it in a hurry!
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N SENSE of decision making and forget others.
