Tuesday, July 1, 2008

This is not bear market, this is a mad market - rethink yourself

What we are seeing is entirely an Mad market rather than calling it a
Bear market. Everyone starting from FII , DII, HNI, Small Investors
are not seeing the fundementals of the companies but simply selling.



Infact investors are waiting for every next trading day to dispose
the stocks rather than accumulating , if everything goes this way how
can market sustain , adding to this 9 out of 10 analysts comes out and
say " we may see 10000 levels very soon " infact these coments also
allow the investors to rethink on what they are doing.



Today if you see many A groups stocks like ABB , SBI , ICICI and so
called the best stocks in Reality DLF, UNITECH , PARSVNATH all are at
their 52 week low, did any one expected that these stocks be touching
lows this ways , for me i never thought DLF trading below 400 , ABB
below 800 , GMR at 80 , OMAXE at 120, BGR at 210 which were almost 5
times from the present price few months back.



Ok, now this is not time to blame the Crude, Inflation , Government,
etc. No one expected crude to march towards the 150 $ , none imagined
inflation in double digits and none thought the time of disagreement
between left and congress , but unfortunately everything happened in
the same time and this caused markets to melt like ice.



What should we do now ?



Those invested in large quantities have to wait rather than selling and can buy in small quantities and average them.



Those invested partly can buy in small quantities, may be 20 % in every 250 points crack and can average till 12000.



Those who are planning to invest can start investing 10% on every 100 points crack.



(Note : All investments to be in selected A group stocks and which have lost more than 50-60% of their highs )



We hope this is the best way to tackle as the selling in the markets
may continue for some more time as the investors acting mad and
converting fundementally sound market into bear market. Few months back
iif would have invested in any reality share you would have earn 10%
returns in 10 trading days , but that will not be the case now. With
rumours spreading like fire , inflation peaking , crude spiking it will
be very difficult to earn profits.



(RUMOUR : CRUDE : 180$ , INFLATION : 20% , SENSEX :9000-10000)



We advice not to believe in rumours , as these spread like fire and
this causes meltdown in markets. We advice members to rethink about
the their investment and the fundamentals of the company which will
never change in matter of few months. One should have belief in their
investments and hold on their positions.



May be it will be very difficult to digest that their investments is
being vapourated but with patience the cycle of vapour forming into
rain and reaping profits will come sooner or later , none can expect
the returns in short span but with long term point of view the profits
will be sure shot. As of now one can accumulate the stocks and get
the buy price lower rather than selling them in losses.

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