A few months ago, several retail investors had entered panic mode as the markets were correcting very sharply. I remember how certain people further fuelled the panic by making comments of absolute doom. Now once again markets have bounced back up since then, and we have people making comments of absolute bliss. At that time I suggested people not to sell in a panic and study the fundamentals of the companies they had invested in.
Now I am telling people to not simply be carried away by hype and not to invest blindly. Irrespective of where the market is, our job as an investor is to study the fundamentals of the business we are investing into. We can’t really predict where the market is going to be. Some businesses are less affected by global financial crisis, while others are more affected by it. A bank which is involved with the West when it comes to certain credit instruments might be more affected than say a company selling milk products and daily consumer goods to retail consumers in
Nothing could be worse than following ideas and myths about absolute doom and absolute bliss. The world is going to face some channelling times, due to what has happened in the West, however it is not permanent. I feel over time we will come to know the insides of the problem.
However most businesses which are
Sometimes stock markets will portray this and at other times stock markets will discount this. Let us say tomorrow the stock markets correct, does that mean the country stops growing? Similarly let us say because of stock manipulations or aggressive buying the Sensex goes to 40,000 in the next one year, does that mean the economy too is growing that fast?
In the long run lot of money is going to come to
I know there is a lot of money that is waiting to come into
In case you are a market watcher. Do remember that it makes more sense to not bother too much about each bit of news as compared to constantly scrambling and running behind information which might not be needed. If you remember the Sensex was 100 on 1st April 1979. Today we are around 17,000 on 29th April 2008. Not too bad, is it? Imagine what all happened over this time. We had scams, economic problems, the License Raj and all sorts of challenges, still things are really that bad now, are they?
No wonder fools like me who continue thinking for the long term and believing in the
We need to spread this way of thinking and mindset to millions of more people. It will happen.
Keep smiling and happy wealth creation!
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