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React Wisely To Market Swings  
 
Regretting that you didn’t sell when the markets were high? Annoyed that you were not told to sell? Repenting that you bought more at higher levels? If you are… you should not, because neither you nor anyone in this world can really time the market. “The only people who buy at the lows and sell at the highs... are liars”. Heard about the famous saying “It’s not about timing the market, it’s about time in the market”. What really matters is whether / or not you’re holding the best stocks or Best Equity Funds which are expected to create wealth for you in medium – long run. So what if they fall 10-20% immediately after you make a purchase. You can't be lucky always.  A seasoned and experienced investor is never perturbed by market corrections.

The market rarely shows true value. It is mostly overvalued or undervalued as optimism & pessimism have no boundaries. “The stock market always does whatever makes the greatest number of people look foolish”. (Read my article on moneycontrol.com on: “The market is smarter than any individual”). The idea here is not to scare you, but to remind you that “patience pays”.

It has been our continuous endeavour to suggest to you the best Equity Funds which are expected to do exceedingly well in future. Market ups & downs are impossible to predict in the short term, but the medium – long term trend of the India’s story still remains as solid, and as intact as ever. It surely won’t be a smooth ride upwards. You will see such corrections many-a-times and should be smart enough to pounce on such corrections to invest as much as possible (depending on your risk appetite) in best Equity Funds for long term wealth creation.

You need not worry about whether the markets will bounce back or not. “Markets are slaves of earnings… and nothing else” (that’s my favourite line). India’s corporate results are expected to improve by 15-20% p.a. for many years to come. India’s GDP growth at 8.4% is robust and sustainable. So fundamentally you're betting on an economy which is roaring. All other worries come secondary and may cause liquidity problems for sometime, resulting correction in the markets. Never forget a useful saying: “The stock market climbs a wall of worry”. Even when there are a zillion things to worry about – and there always are – people will buy. Despite the depression, two World Wars, terrorist attacks, and so forth, the stock market has climbed inexorably higher. So don’t - regret, be annoyed or repent during markets falls.

To conclude here’s one of my favourite sayings: “Buy to the sound of cannons, sell to the sound of trumpets”. Buy when things seem gloomy because securities are cheap; sell when things seem glorious because securities are expensive. Or as Lord Rothschild once said, “Buy when blood is running in the streets”.

 
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