Sunday, August 21, 2011

Prey and Praying is bottom fishing!!!!


THE WAIT IS SO LONG FOR THE AVERAGE INVESTORS TO PLACE BUY ORDERS BY MAKING AN ATTEMPT FOR BOTTOM FISHING IS JUST TO FILL THE CRAVE, BUT WILL BECOME A PREY, THEN STARTS PREYING THE GOD TO COME FOR RESCUE.

The "Prey and Praying" mind set is the culprit mainly exists in the retail investors helping the operators to make huge money from these so called intelligent investors. The relentless selling in Europe and US is tempting our retail investors to go for shopping. The Indian markets are better placed doesn’t mean to buy. The free fall in our markets is yet to start.

The  warning given buy the rating agencies to US govt. for that matter to the world markets fell on deaf ears, now suddenly realized the importance. The US rating agency Standard & Poor ultimately decided to put the event to a conclusion made the tail spin in the markets. The fear engulfed in the investors and recognized to cut their exposure to equity markets. The retail investors who follow stared at the events to come to halt and rise to the previous level where they could take a call never happened.

Now the Emerging Markets are becoming adobe of Growth avenues, especially in equity markets. These markets are flourishing with rich natural resources and untapped potential attracting the Global Investors. The average short-term investor gains at one time and loose four times, but remembers the success and put a side the failure to keep floating in the markets despite the turmoil and perils.

The sensible investing builds a portfolio based on growth opportunity for next 5-7 years where the stocks normally multiply by 4-5 times. The Nifty likely to test 4500 level and the mid caps and small caps will see a water fall slide in prices. The Indian Govt trying to sacrifice growth for inflation control. The tradeoff did not yield results so far but the authorities are confident to achieving the same. The planning commission is setting 9% growth targets which will definitely achieving with FDI and global opportunity. The global crisis will open once again out sourcing model to save money & the economy will benefit the EMs.


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