Saturday, October 18, 2008

The trimmed excesses….

The markets are bound to rise as they fell. This is a natural phenomena inevitably happens whether some body likes or not.

The concern at this hour is “how fast and by what time?”. This is the common question lingering in every investors mind. Now just imagine some body met with an accident and was admitted in a hospital, placed in intensive care. Then the question will be of What?. Whether it is survival or surprise on the happening?. Then every body will accept with joy that the patient is alive and will be discharged soon after surgery and due care. The same situation is happened to the financial markets across the globe, all are hospitalized, some are in ICU, surviving on Govt. intervention and some are in specialists care.

So my sincere request to investors is to for get reading the daily news of financial happening unless you prefer to be a day/swing trader. The best thing is keep averaging to the limit some body can, enjoy dreaming the golden days that are being manifested.

The only trouble with the recent young investors is the very nature demanding the high valuations that were there and as a matter of fact they paid for the boom.
Now the situation is quiet different, the excess valuations of high P/E valuations above 50 were gone and the realist levels of 9-14 are ruling.

So adjust to the reality and accept the truth, keep on investing in companies that delivered high rate of growth over 3-4 years.

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