Today i was speaking to a prospect, he was looking for personal loan and he want to invest that money in shares, since he felt markets are down and sahres are available dud cheap. He asked me for good shares where he can invest. All shares in BSE sensex are excellent buys now. Is he ready to take the risk of market coming down by another 25% in worst case. If he is ready then he can invest in Banking, Software FMCG all are available at very attractive prices. Some banking shares are available at P/E less than 5, much below their book values, even divident payout will workout to more than 5% to the investment, which is a decent investment.
Now take your calculators, go to web sites of the companies read their dividend payout for the last 5 years, see their book values, see the market price, see the management outlook then invest. Hardly it takes 1 hour to study these fundamentals.. Technicals nonsense, the best of the technical analyst went wrong, i didnot see or heard from one analyst where the market will end, every one were wrong, so you are nothing bad to him. So invest boldly now. Market will certainly grow, Indian Companies are still strong and growing reasonably, and steadly.
Saturday, October 18, 2008
Market Crasshed - Hopes Crashed
Lot of people who invested in stocks lost trillions of money world wide. It was just like a bolt, it took years to reach the peak and just monts to loose all the gains in the market. Smart investors who were satisfied with the ever raising index liquidated initially are a happy lot now. What about the hapeless investors who didnot sell the stocks and still holding them. Remember one thing, all the loss is notional till you sell the stock. Once you sold them then you know what exactly you lost over your investments. If you worked out values of the shares before investing and felt that is the right value then invested your own money and not borrowed money and have enough patience dear friends remember one thing after every fall there will be a raise, so dont worry, happy days will be back. One thing of caution before signoff never be greedy, invest after doing homework, what you expect from the stock and donot go by some street side advisor. In boom times every one will be a specialist. so be careful and use your own judgement in investing.
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