Stock market: To remain uncertain and unpredictable
The Stock Market is still uncertain and unpredictable. The market is treading in flux and is not sure which way to go. It is important for investors to remain cautious while putting their money in stocks.
INDIA HAS been the third best performing market in the world in 2009 just behind Russia and Brazil.
Nobody would have expected such a recovery for Indian and global stock markets. The year 2009 has been phenomenal.
The India markets were buoyant on FII buying and due to the rally across the global market. The broad market as measured by the movement of BSE Sensex, gained by 81 per cent from December 31, 2008 to December 31, 2009. The Brazilian market gave investors a slightly higher return of 82.7 per cent and the Russian market offered investors a handsome return of 111.6 per cent. This return was higher than the eleven major world indices such as Nasdaq Composite Index, S&P 500 Index, Dow Jones Industrial Average and Nikkei 225.
Nobody would have expected such a recovery for Indian and global stock markets. The year 2009 has been phenomenal.
There were several major reasons for such a surge in the markets. Firstly, the condition of global markets improved and we witnessed huge inflows from foreign funds. Apart from that in the last two quarters, we also saw strong earnings growth. The major game changer was the general elections in which Congress-led UPA government came with the clean majority.
Indian stock market are likely to extend the rally into 2010, underpinned by strong economic growth and an improving earnings outlook, but are unlikely to repeat 2009's spectacular rise, a Reuters poll showed earlier this month. Another report from Morgan Stanley says Sensex may touch 50K mark in five years.
An equity research group Elliot Wave International is predicting that sensex could reach 1 lakh levels 15 odd years from now in 2025.
Research reports like this just give us a ray of hope, but it may or may not happen as no one can predict the accurate moving of the markets. Further trusting such research reports is dangerous. One can always check out the past records and find what is possible.
Though the emerging markets remain a favourite for many investors in 2010, focus is mainly on fiscally sound countries in Asia, such as India, China, rather than on eastern Europe.
The market is still uncertain and unpredictable. The market is treading water and is not sure which way to go. John Gerlach, professor of Finance at Sacred Heart University, predicts a slow economic recovery through 2010 and believes that the market is running out ahead of itself because of an anticipated financial upswing.
Indian stock market are likely to extend the rally into 2010, underpinned by strong economic growth and an improving earnings outlook, but are unlikely to repeat 2009's spectacular rise, a Reuters poll showed earlier this month. Another report from Morgan Stanley says Sensex may touch 50K mark in five years.
An equity research group Elliot Wave International is predicting that sensex could reach 1 lakh levels 15 odd years from now in 2025.
Research reports like this just give us a ray of hope, but it may or may not happen as no one can predict the accurate moving of the markets. Further trusting such research reports is dangerous. One can always check out the past records and find what is possible.
Though the emerging markets remain a favourite for many investors in 2010, focus is mainly on fiscally sound countries in Asia, such as India, China, rather than on eastern Europe.
The market is still uncertain and unpredictable. The market is treading water and is not sure which way to go. John Gerlach, professor of Finance at Sacred Heart University, predicts a slow economic recovery through 2010 and believes that the market is running out ahead of itself because of an anticipated financial upswing.
For some people, investing in 2009 was easy; But It looks like 2010 could be a lot more difficult, requiring selection and market timing to bring in the best results. Financial experts agree that investing in the stock market is always a good move over the long haul. But don't let the market upswing at the beginning of the year lure you into expecting robust returns.
The year 2010 will be good, but will not be as good as 2009 for the investors. We won't see such a fantastic performance any time soon. Reuters expects the market to rise 20 to 25 percent in 2010.
Let us not think of earning good money within a very short time investment. Some investors, who think that short term or day trading is very risky, do not dare to take the risk by investing the money in day trading. Always believe in long term investment for good returns.
It’s very essential to know that where should we put our money if we want our portfolio to outperform the markets.
We should also know that we need to have a very good understanding of the stock market if we wish to be successful in the market. Unless we know the basic concepts of the stock market we would not be able to make good money. So, it is very important to make a good research of the market.
One has to understand the fact that wealth creation takes proper planning and comes with patience and faith.
The most important thing that we need to have is patience. Unless we are patient we would not be able to make good income from the investments that we have made. One should never be in a hurry to invest your money in the stock market. We should know that there is always a sort of risk that is associated with the stock market and we should be able to face the risk. So let’s try to be very practical when we invest in the market
Keep focus and make sure that you keep your losses down. A good investor needs to have complete control over the stocks movements. They need to know the exact time to buy and to sell a stock. Never get unhappy about small losses. It is always better to make sure your losses stay small. When you trade only invest an amount of money that wouldn't bother you too much if you lost. Overall, to have the best outcome, you should try your best to keep your emotions away from your work and invest wisely.
We invest in stock market to make money. All hard work with proper planning brings a profit but mere talks, trading tips and trades will lead only to losing what you have
Let’s follow this investment philosophy “buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price”.
Let us not think of earning good money within a very short time investment. Some investors, who think that short term or day trading is very risky, do not dare to take the risk by investing the money in day trading. Always believe in long term investment for good returns.
It’s very essential to know that where should we put our money if we want our portfolio to outperform the markets.
We should also know that we need to have a very good understanding of the stock market if we wish to be successful in the market. Unless we know the basic concepts of the stock market we would not be able to make good money. So, it is very important to make a good research of the market.
One has to understand the fact that wealth creation takes proper planning and comes with patience and faith.
The most important thing that we need to have is patience. Unless we are patient we would not be able to make good income from the investments that we have made. One should never be in a hurry to invest your money in the stock market. We should know that there is always a sort of risk that is associated with the stock market and we should be able to face the risk. So let’s try to be very practical when we invest in the market
Keep focus and make sure that you keep your losses down. A good investor needs to have complete control over the stocks movements. They need to know the exact time to buy and to sell a stock. Never get unhappy about small losses. It is always better to make sure your losses stay small. When you trade only invest an amount of money that wouldn't bother you too much if you lost. Overall, to have the best outcome, you should try your best to keep your emotions away from your work and invest wisely.
We invest in stock market to make money. All hard work with proper planning brings a profit but mere talks, trading tips and trades will lead only to losing what you have
Let’s follow this investment philosophy “buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price”.
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