Monday, May 11, 2009

Recent Rally in BSE and NSE

The recent rally in all markets across the global seems more like speculators gamble to get them out and trap innocent and small investors. Small investors always end up in timing the market and end up in such traps. If you see some stock in BSE & NSE they have almost doubled in the past 40 days
But there are no sound reasons for this. According to a leading daily some 300 odd companies have seen there stocks double in from their lows during last 3-6 months and its interesting to see that all kinds of stocks mid-cap,large and small caps have this pattern of sudden interest and increase in value. It is also nice to see real estate stocks moving up.
With election results round the corner (16-May-2009) our markets will be very volatile and if there is no stable Govt in the center then we are in deeper trouble , as though the world crisis was not enough for us we will also have local instability. Any party other than Congress lead or BJP lead form the Govt its going to be a reverse gear for many of the reforms , they would only work on their own party agenda and most of these local parties don’t have national interest nor do they have ministers capable of handling our economy.
Its better to stay away till month end and then start investing in chunks (SIP) rather than investing in single mode and we are in a way blessed in such markets that we can buy some quality stocks at reasonable price and expect good returns in a time frame of 4-6 Yrs.

No comments: