This was a question raised in the money control website today and the votes received were to 'buy'. This is how lay investors think and get caught up in losing precious capital. Markets are down and there is a reason for it, it is like catching a falling knife to buy stocks now. There is not one single good reason to think of buying stocks now. Just for the sake that the markets are at lows if we go bottom fishing, we will not get fish but will surely loose the net.
Second quarter results of almost all the front line corporates have showed declining performance. Most of the Industries themselves are showing poor performance, there are very few stocks that are showing strength in results, and even in them price is not in a hurry to give any reasonable buy signals.
Price of many so called Blue chips have almost eroded above 50% from their high's. If at all any buying is happening in the markets these days, it is because of those investors buying with the same answer that they have chosen for the question today.
Mutual funds who are a much more informed lot than the individual investors in the markets are not buyers now, FII transactions record shows a very clear decline, they have been net sellers for quite some time now. When all those who know what is the market are not investing how will the market or any stock for that matter give any good returns?
Any investment should earn returns after we invest, it should not deplete. Trading or investing is not always a win-win game, but knowing for sure you are going to loose or at least 80% chance of loosing, if we take positions, it is literal gamble. Then after they loose all the savings, brand the market activity itself as gambling.
With the way the economy, Industry and the Global situations are now, there are very less chances that any markets world over will see any good returns, It is best to liquidate positions when markets offer a small relief rally and stay on the sidelines till there are some clear signs of strength in both the economies growth as well as growth in the companies that you will want to invest in.
Second quarter results of almost all the front line corporates have showed declining performance. Most of the Industries themselves are showing poor performance, there are very few stocks that are showing strength in results, and even in them price is not in a hurry to give any reasonable buy signals.
Price of many so called Blue chips have almost eroded above 50% from their high's. If at all any buying is happening in the markets these days, it is because of those investors buying with the same answer that they have chosen for the question today.
Mutual funds who are a much more informed lot than the individual investors in the markets are not buyers now, FII transactions record shows a very clear decline, they have been net sellers for quite some time now. When all those who know what is the market are not investing how will the market or any stock for that matter give any good returns?
Any investment should earn returns after we invest, it should not deplete. Trading or investing is not always a win-win game, but knowing for sure you are going to loose or at least 80% chance of loosing, if we take positions, it is literal gamble. Then after they loose all the savings, brand the market activity itself as gambling.
With the way the economy, Industry and the Global situations are now, there are very less chances that any markets world over will see any good returns, It is best to liquidate positions when markets offer a small relief rally and stay on the sidelines till there are some clear signs of strength in both the economies growth as well as growth in the companies that you will want to invest in.
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