Indian stock markets have been witnessing a bear trend almost the whole of first half of year 2008.
It was with much excitement that Indian investors lived through most of the year 2005, 2006, 2007, and until early 2008. It is towards the end of January, 2008 that the ship begun to list and now it has almost half sunk by the middle of July.
This year, so far, it is pain of the century being inflicted upon the investing community. As things stand, problems are only multiplying with no end in sight. Inflation, political question marks, still rising interest rates, slowing economic growth, and skyrocketing oil prices are some of the major negatives affecting the market.
On the surface, it seems that the Oil prices is most to blame for the situation with Indian markets. But you never know, in the complex maze of economic ups and downs, all confidence seems to have been lost at the moment and the great ‘Indian Economic Growth Story’ has developed cracks everywhere.
Few people have long years of experience and the luck to do the right thing at the right time. I was not so fortunate to sell the complete holding and run. By the way, I was anyway a long termer in the market as you can see from my lecturing in the ‘Online Share Trading Guide’. But now, I have become clearer that the long term means at least 8 years. Unfortunately, few of us have the ‘staying power’ for that long a period. However, the fact remains that most of those very rich men who made money from the market made it by staying through the ups and downs for 20, 30 years and more.
However, those of you who have not entered into financial markets, those of you who are young at sweet 16, 18, it is best to enter now. This is a good time in the sense that markets have fallen a lot. However enter small but steady. If you have 10,000 to invest, invest it over the next six months in a staggered manner. Never do it in lump sum as you never know where the markets are headed and when it will bottom out.
The key, is gaining experience and giving the process of investing, a start. If you refrain from doing these two things, there is no way you will make money from the stock markets. Get into the education mode first. Mind, Knowledge, and the ideas you form, dreams you experience, are the keys to everything in life.
I have seen many crashes over the past two years. However this one seems quite different and ferocious most. The reason is, it does not seems to be ending. Even after six months of incessant falls, it has still not reached bottom or no one is sure when it will ultimately hit the bottom in clear terms.
However, the big guy, Warren Buffet is known to love bear markets as is the situation now. Why not you love it too? If you have money, it is best to deploy it in the markets when all hell brake loose. But even then, remember the staggered approach and the fact that no one can tell you where the market is headed, though the valuations may be attractive.
The question on everyone’s mind always is which one to buy (I am talking about those novice – subject of my online share trading guide). There is no answer to that question. There is only answer to the question as to which has been our best & reliable companies over the years. None can predict the future performers precisely. Few names come to mind as to which are that best blue chips for the long term. They are, Reliance Industries, Larsen & Toubro, ITC, Ranbaxy, ICICI Bank, Infosys, SBI, and DLF or Unitech.
– T. P. Gopinath for CalicutNet.com