Worlds Financial Markets
Ξ May 27th, 2009 | → 0 Comments | ∇ General | 
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In the last 3-4 years we have seen an upside during the Bull Run and a downslide during the Bear run. It’s been a bad year for investors in the market!
The last ten months has seen some sharp downslides (falls) by many stocks. Investors are pretty tensed and nervous because things just don’t seem to be falling in place. Volatility in the stock market is not a surprise, but the quite sharp downs and ups are cause of great concern to even the individuals who are old-timers in this industry.
What is going to happen?
Don’t listen to what others have to say, because half of the people out there are as naïve or inexperienced as you. Remember that you should follow your instincts. Try to get the basics of the stock market and all its activities right in the first place. Listed below are some basic facts that may help you in the long run.
- 1st fact: the equity market is not a gambling arena. Each and every share has its basic value and it is wholly based on the performance of the company.
- 2nd fact: the intrinsic value may differ from the share price value.
- 3rd fact: based on the growth and profitability of the company, the trend is that the share prices will move to their true value.
- 4th fact: even if there is a recession in the United States, the Indian economy will continue to grow and will be comparatively higher than other countries.
- 5th fact: the next 5-10 years will see a growth rate of 7- 7.5 % unless there is some untold calamity which is serious in nature, a political crises or poor fiscal (monetary) conditions.
- 6th fact: the economy is growing at a healthy pace (rate), and this is sure to echo in the performance of the corporate too. Hence an appreciation of the share market is expected in the near run.
Keep in mind these basic facts when you want to reap rich benefits in the Indian stock market.
- Fear not. The stock market is not for the frail hearted.
- Investments in sound companies are suggested and if you have chosen your mutual funds in sound companies stick to them.
- Rewards await the individual who has patience and discipline.
Last but not the least, follow these sound advices, if Warren Buffet followed them and reaped rich rewards, then so can you!
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