January 02, 2012

On a positive note!

At the outset; I would want to wish each one of you a Healthy, fun filled, financial rewarding (very important) and joyous 2012 and beyond.


The market ended today on a positive note and this could have an important bearing on what lies on the year ahead. For one, I believe that thinking intuitively should come very naturally, yet it, like art is never mastered. Also, though the fundamentals of logic and intuitive thinking are very easy to understand, they are extremely difficult to put to practice. Remember, even ace swimmers do panic when put in situations which they have not witnessed before and drown.
Staying calm, staying focused and working more hard (as opposed to working hardly) when times are tough is the only way to tide over the extra-ordinary circumstances that present us.
The implications of positive markets for today might not mean much in terms of forecasting what lay ahead for the entire 200+ trading days ahead; however it does have bearing in the light of what has happened over the past 52 weeks of trading we have seen. I must admit that looking behind over several 52 week period back to 2008, which has been a longish enough period the fatigue factor has indeed set-in, in the minds of the investors.
Therein lies the opportunity, people (often seasoned) drop guard in these times. They resign to the fact that we are in for an extended period of bad phase and abandon all hope. There is where opportunity lies. Ultimately, life is a matter of seeking arbitrage. One who has spotted a wide gap, whether it be financial, spiritual or material; he would make a killing.
Finally, the part where all you guys would push me to; to forecast what lay ahead. I would stick my neck out and come out strong in favour of equities for the year 2012. While I do not foresee runaway bull rally from the word go; I would think that we will end 2012 with respectable returns for the equities markets. This means that for people who could not make money in 2011, this is an excellent time to make it. For those waiting to enter, the time could not have been better.

Get in, sit back and enjoy the ride.

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