Desparate (innocent) car owners turn to fraud (forced to fraud)
US medical aid for citizens, how does it work ?
BIggest Bear Trap in History
Latest : Oil above $71
The Depression quietly deepens
Read them all and decide if you still wnat to put your hard earned money
Wednesday, June 10, 2009
Are we being trapped again
The recent rally in stock markets around the world seems rather too unreal and very crazy. The reason I am saying unreal is there is no real fundamental changes in the economies around, may be the extra money printed by many central banks around the world have printed is finding its way back again in to stock market due to some false or altered numbers like the number of layoffs or companies/banks getting closed. All governments around are getting positive without any real reason. All the numbers weather it be industrial output or exports or inflations are at record levels and still the so called experts are giving positive signs.
As a common man I suggest the common small investor to stay away from the market , please continue saving , have at least 6 months to 1 Year of your monthly living expenses which includes all your loans as side in a bank as ready cash. May be have it as a RD or FD or mix of both and some in Postal schemes.
Invest in Gold ETF via SIP this can be 5-10% on a monthly basis.
Coming to stocks , it is highly recommended to avoid investing directly in equity rather its better to take the Mutual Fund route , there are at least 1-2 start MF schemes from all the leading fund houses in India. One good source to select would be the ratings provided by Value Research a independent analysis company. They also have an array of useful tools available , give it a try.
Example : You can quickly see which fund has returned > 20% in the past 5 Years
5 Start Funds
They have the ratings for all types of funds , Equity, Balanced,Tax saving etc
They also publish good articles on a weekly basis which are worth reading for a common investor like us.
Also it is recommended to take the SIP way of investing.
One thing I have been doing in the current rally is selling some sick and stupid stocks which I had chased during the bull run and had paid premium rate which was not worth. So I also suggest to exit all stocks which are not fundamentally ok to hold and use the current rally to exit all such stocks.
A word of caution please do not go by the BUY recommedations given be fund houses or brokerage houses or some TV channel , please avoid , would you rely on some strangers advice and waste you hard earned money.
Read this interesting article on the current rally
As a common man I suggest the common small investor to stay away from the market , please continue saving , have at least 6 months to 1 Year of your monthly living expenses which includes all your loans as side in a bank as ready cash. May be have it as a RD or FD or mix of both and some in Postal schemes.
Invest in Gold ETF via SIP this can be 5-10% on a monthly basis.
Coming to stocks , it is highly recommended to avoid investing directly in equity rather its better to take the Mutual Fund route , there are at least 1-2 start MF schemes from all the leading fund houses in India. One good source to select would be the ratings provided by Value Research a independent analysis company. They also have an array of useful tools available , give it a try.
Example : You can quickly see which fund has returned > 20% in the past 5 Years
5 Start Funds
They have the ratings for all types of funds , Equity, Balanced,Tax saving etc
They also publish good articles on a weekly basis which are worth reading for a common investor like us.
Also it is recommended to take the SIP way of investing.
One thing I have been doing in the current rally is selling some sick and stupid stocks which I had chased during the bull run and had paid premium rate which was not worth. So I also suggest to exit all stocks which are not fundamentally ok to hold and use the current rally to exit all such stocks.
A word of caution please do not go by the BUY recommedations given be fund houses or brokerage houses or some TV channel , please avoid , would you rely on some strangers advice and waste you hard earned money.
Read this interesting article on the current rally
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