Looking at the current market scenarios, from blue chip to small cap all the stocks fell down 60-70% average where index fell down 30-40%. There are many stocks which we were willing to buy when market was up but could not do because of its high prices are available at huge discount but still we are not buying why?
1st - Very few people has cash to buy, when things looks bright we use to spend and when there is dull market we use to keep ourself off the market.
2nd- Very few people were able to sell at the top or even after Jan'08 fall, and now the prices are at such a lower level that it is better not to sell.
3rd - In case if someone has cash (lucky guy!!), they feel let the bottom come and then i will invest but only God knows which is the bottom and where is the top.
So, what one should have been done pre Jan'08 crash .......per my view one should have invested in Small Caps where FII/MF exposure are NIL or Low, current market fall is due to FII pulling their cash, and if you were invested earlier in small cap where FII exposure is less or not, the extent of fall in the share price will be low.
What one should do now.....as far as my understanding goes, we are in bear market and we will be in bear market for some more time (how long? predicting that is waste of time), and the next rally will start whenever, those sectors which has participated in the last bull run from 2003-08 will not participate again like Telecom, Real Estate, Power, Reliance pack etc. So ignore these sectors and look at the sectors which are left or ignored during last bull run. Again better invest in small cap with 10 times in 3 years potential, which are those companies? During daily posting we will discuss few of them....Keep watching.
Happy Investing!!!!
0 comments:
Post a Comment