The stock market is a funny game where we see investors bullish when the prices are soaring (expensive) and usually the same pack of investors get bearish when the stock prices are trending downwards (cheap). Says Sachin Rane, a mutual fund advisor and distributor from a Tier II city: “Recently when the stock market was trending upwards, all investors wanted to buy Poonawalla Fincorp when it was available at about Rs 302 per share. However, now that the markets have corrected and the sentiment has reversed, the same stock is available at about Rs 240 per share which is 20 per cent cheaper from its 52-week highs. Logically, one should be buying the product if you are getting it cheaper, right? But that is not how things work in the stock market.
Indeed, the concept of ‘right time to buy’ is one of the biggest scandals the stock markets have ever seen. The truth is there is never a right time to buy unless one is willing to wait for the ‘right amount of time’ in the markets. However, most investors are always obsessed with timing the market. It is a known fact that most investors are short-sighted when it comes to the stock market game which is designed for winning in the long run. It is only after an investor spends years in the stock market that he or she realises the merits of long-term investing. It may not be completely wrong to say that most investors are forced to be long-term investors just because their short-term positions have gone against them and that they failed to apply stop losses in their positions.
Denne historien er fra March 14, 2022-utgaven av Dalal Street Investment Journal.
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Denne historien er fra March 14, 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
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U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
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Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
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