Capitulation? Or is it darkness before the dawn ??
Dear readers,
It has been sometime that I wrote my thoughts here. Paralysis of governance and economic crisis in the west has compounded our problems. Hence our equity markets are going lower day by day. Pessimism is galore. Analysts, media are expecting NIFTY to tank to 3800....! There is blood bath on the Dalal Street. No stock is safe haven and we do not know where and when bears will strike.It is in such times that great investments are made.
My questions are: Is India worse off than in 1991 or 2008? No.
Have Indians lost their zeal, tenacity and ability to work hard? No.
Are we short on resources and manpower? No.
Has Indian Industry lost its competitiveness? No.
Are Indian banks burdened with so much debt that they are likely to collapse? No.
To most questions the answer is a resounding 'No'.
Then why are Indian stock markets collapsing? The answer is lack of depth. Even small amounts of concentrated selling can bring down our markets in a jiffy. We have seen it earlier and must learn our lessons. There is no need to panic at all. Today's sell off could have been triggered by some such concentrated selling followed by margin calls and 'stop losses' being hit.
There are so many stocks available at mount watering valuations. No research required. No financial adviser required. Save on all such costs. Just buy them in a staggered fashion. And hold them for a year or so.
Trading in F&O is dangerous specially in this kind of volatile market. Cash markets and delivery based buying or selling is recommended.
Lastly one point to remember. When there is strong momentum specially downward momentum, no levels/supports can be assumed or predicted. It is a waste of energy to even look at technical charts. Buy stocks at reasonable valuations and you will not repent. These investments are likely to reward us faster than the ones made earlier.
Happy investing.
regards
Vibhas
It has been sometime that I wrote my thoughts here. Paralysis of governance and economic crisis in the west has compounded our problems. Hence our equity markets are going lower day by day. Pessimism is galore. Analysts, media are expecting NIFTY to tank to 3800....! There is blood bath on the Dalal Street. No stock is safe haven and we do not know where and when bears will strike.It is in such times that great investments are made.
My questions are: Is India worse off than in 1991 or 2008? No.
Have Indians lost their zeal, tenacity and ability to work hard? No.
Are we short on resources and manpower? No.
Has Indian Industry lost its competitiveness? No.
Are Indian banks burdened with so much debt that they are likely to collapse? No.
To most questions the answer is a resounding 'No'.
Then why are Indian stock markets collapsing? The answer is lack of depth. Even small amounts of concentrated selling can bring down our markets in a jiffy. We have seen it earlier and must learn our lessons. There is no need to panic at all. Today's sell off could have been triggered by some such concentrated selling followed by margin calls and 'stop losses' being hit.
There are so many stocks available at mount watering valuations. No research required. No financial adviser required. Save on all such costs. Just buy them in a staggered fashion. And hold them for a year or so.
Trading in F&O is dangerous specially in this kind of volatile market. Cash markets and delivery based buying or selling is recommended.
Lastly one point to remember. When there is strong momentum specially downward momentum, no levels/supports can be assumed or predicted. It is a waste of energy to even look at technical charts. Buy stocks at reasonable valuations and you will not repent. These investments are likely to reward us faster than the ones made earlier.
Happy investing.
regards
Vibhas
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