Hi
From the lows of June 14 (after the crash of May 2006) the market has come a long way. Till now I could not find any of the foreign and desi frogs croacking. They were amazingly silent. Now only we have started to hear some of the noises from FROGS and also singing praise of midcaps and smlcaps stocks.This is a clear sign of home run to the target of 15000 from now on that sensex has crossed 13200 i.e. 20% upside.
Till now retails investors have not much participated in the run from 9000 to 13000. Therefore it appears plausible that all effort would be made to attract reatil investors. Therefore, I think it would be advisable to exercise utmost caution in investment. This is mostly for short term investors and not for long term investment who would have invested in stocks of their choice much earlier. Even now for long term investment would not be a problem provided they invest in fundamentally sound companies but to always keep in mind to protect their profit.
Whether market runs up beyond 15000 or not will not be the question , but whether there will be talk of economy overheating and consequent overvaluation of market and then the plung to say abt 20% . That will take us back to somewhere around current level. With this scenario in mind only investment decisions should be made.
Investment in frontline companies are better then midcaps or smlcps which would be stirring to do something which they otherwise could not do in current economic development. And once retail investors have been done with these companies will again go back to sleep.
Therefore, for short term I think ride with the market trend but follow the discipline. Once target is reached or say 80% reached, get out. Don't get lured by more upside. There will always be some upside left and there will always be other stocks to invest safely.
One thing which I was always convinced abt is that Indian growth story is still unfolding and will continue to do so for next 10 years ro so. We have so much distance to cover yet.Therefore market will have to reflect this and it may be in real long term secular uptrend and primary trend appears to have resumed.
pankaj
From the lows of June 14 (after the crash of May 2006) the market has come a long way. Till now I could not find any of the foreign and desi frogs croacking. They were amazingly silent. Now only we have started to hear some of the noises from FROGS and also singing praise of midcaps and smlcaps stocks.This is a clear sign of home run to the target of 15000 from now on that sensex has crossed 13200 i.e. 20% upside.
Till now retails investors have not much participated in the run from 9000 to 13000. Therefore it appears plausible that all effort would be made to attract reatil investors. Therefore, I think it would be advisable to exercise utmost caution in investment. This is mostly for short term investors and not for long term investment who would have invested in stocks of their choice much earlier. Even now for long term investment would not be a problem provided they invest in fundamentally sound companies but to always keep in mind to protect their profit.
Whether market runs up beyond 15000 or not will not be the question , but whether there will be talk of economy overheating and consequent overvaluation of market and then the plung to say abt 20% . That will take us back to somewhere around current level. With this scenario in mind only investment decisions should be made.
Investment in frontline companies are better then midcaps or smlcps which would be stirring to do something which they otherwise could not do in current economic development. And once retail investors have been done with these companies will again go back to sleep.
Therefore, for short term I think ride with the market trend but follow the discipline. Once target is reached or say 80% reached, get out. Don't get lured by more upside. There will always be some upside left and there will always be other stocks to invest safely.
One thing which I was always convinced abt is that Indian growth story is still unfolding and will continue to do so for next 10 years ro so. We have so much distance to cover yet.Therefore market will have to reflect this and it may be in real long term secular uptrend and primary trend appears to have resumed.
pankaj
Thanks for ur words. I always looking for ur mail. Thanks for helping all the forum member specially on time. i expect more mail from u time to time. Let this thread be never close.
Ahmed