Monday, September 29, 2008

Don't Panic Over Market Meltdown; It’s a Bargain-Hunters’ Market - Don’t worry, for this too shall pass.


Dear Readers,
Come on friends, why are you getting so much panic from fall in the stock market? You have bought a fundamentally strong company and it is the earnings of the company which is going to help capital appreciation, not the market movement.

I do agree that fall in the market will put pressure on the company’s earnings or their share prices but after all you are here not for a day or month but for years to come. Warren Buffett has created huge amount of wealth from the stock market only after being in the market for 30-40 years or more.

Remember time is in your hand which is the biggest and strongest part of equity market. You can wait for 2-3 years and believe me if you have surplus cash which you don’t need in near future it would be better to invest now and buy best companies (look for best 5 mid caps from Mid-Cap Mela of HBJ Capital) at throwaway price.

In fact there are many good mid-caps which has become small cap after losing 3/4th of their value. So, going forward you might find some exceptionally great mid-cap companies as a part of "10in3" research report.

Don’t forget that “at any point of time every one can’t be rich” so it would be better if you behave differently from crowd. Whole world is selling as if sky is going to fall but remember during last 100 years, stock market has given best returns and it will continue to do so, you need to have patience and conviction to hold it.

Moreover this downturn is mainly due to US economy or UK, not due to Asian economy and by the time they recover may be in next 1-2 years, our own Asian economy with GDP growth rate in the range of 6-10% will emerge as more power. Next decade is for India and China so why are we worried about these market falls? One should have confidence and faith on their own market because tomorrow is ours.

So, if you want better tomorrow start investing in India today itself and buddy, India is selling now at discount, yes 50% or more discount!!!

-Head, Equity Research & Investment
HBJ Capital, India

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