Wednesday, January 30, 2008

The game of averages …

The operators take large amount of “Risk” and so is the “Return”. The retail investor always at the fag end to receive the vital information and fail to do necessary home that can give good returns/protect him from the pit falls. I try to once again make the readers about the warning made when the Mid and Small cap run up started …… titled as Distribute and eliminate…………..dt.21-11-07…

Who will buy at higher levels is all ways the question asked by many and the doubt can be answered only when some body experiences the taste of buying at the top and selling at the panic bottom.
“Don’t be CRAZY to chase…”, “be cautious…..,” the phrases often used and shout… buy buy buying—happening every where……create a confusion in the minds of investors and make them to believe every thing is rosy and beautiful. This is a classical effort to prepare the retail small investors to become scapegoats.

In my earlier write up cautioned the readers to think about the happenings at the bourses. The speeds at which things are happening are very new to Indian investors and are losing time, opportunity and money in the process. The game plans are designed in such a manner to eliminate the retail investor incase somebody holding good stocks at fair prices.

“The steep falls and steep rises give little time to think.”— “Stock Market” is a mind game and every step of investment shall go after through research, understanding the business and the timing of pricing the investment.
At the end of the day “Minting Money” in the “Stock Market” comes by “Buy Low- Sell High” but not by buying cheap………………

The experts are clear about the Bull market but are not advising the investors to buy at the rock bottom prices and asking to wait till they average.

The Indian growth story is selling at dirt cheap at the bourses. The inherent strengths are unexplored and more good days to come. Let some body suffer at some place be sympathetic but all thing hungama is just because to give respect. But after a few days of turmoil, the nations will go back to work. Because US is going for elections like us they are also compelling the Govt. to go for some incentives to industry and to the public. The US is no exception than any other nation when it comes to elections. So there is nothing to worry about our GDP growth or about our markets. The good companies will flourish early than the laggards any way lose their steam.

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