Best or worst for stock market in India is lying in the middle of the top and bottom of the current levels. Market has been going through a tizzy in last few weeks and it has become extremely difficult for average investors to keep hold of that. US debt issue has flared the global market worries. Europe was already going through a tough time and when US debt problem came in the picture, it blasted the stock markets world over.
Best or worst for stock market is something which is like predicting its top or bottom levels. Lot of people would say many thing but no one can actually predict that.
Best or worst for stock market depends upon lot socio-economic factors. World has been struggling with economic turmoil for last three years but this time it is different. USA is not showing any sign of permanent solution for its debt problem and china, which was in a better position in 2008, is currently showing sign of weakness. Therefore the risk of a bigger economic recession cannot be ruled out.
Stock markets do anticipate a lot of these things and as usual, they have been falling since news about US debt worries broke into the public domain. Indian stock market has gone through their own share of beating but more breaksdown seems to be inevitable.
So does it mean that one should stay away from the market and wait for good time to come back? In the past we have seen that it is extremely difficult to figure that out and by the time most of the retail investor come back to market, markets have already gone up so high that there is not much space left for them.
This time too, it won’t be different; people will stop investing in market. It is already evident from the lack of retail
participation in the current market, so the ideal way to tackle this would be to pick a pen and paper and start working on a strategy to invest in market.
So that when favorable time comes back, we are in a better position to ride the wave rather than chasing stocks and meeting the usual fate. Experts are busy speculating the next market move but there should be any prizes for guessing that next six months are going to be tough for the market.
So after last year when stocks were roaring high, it is ideal time for retail investors to enter good quality stocks. This is the time when one should carefully analyze the good stocks and invest systematically in them. Rushing into them will cause more damage, so it’s better to invest small lump sum amounts on weekly and monthly basis.
So shortlist your favorites stocks (Technically and fundamentally well) and start investing them in pieces.
Best or worst for stock markets means how you use it in your favor.
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