February 27, 2012

If you have been left out!

The past few days when the stellar rally reached peaking levels, am sure there was a large section of people who has been feeling left out to make a quick 20% on their money and make a killing. The ideal utopian scenario or for someone who could see tomorrow, it could have been easy – enter equities in December and move out in February 2012; thus making a cool 20% and walking away, to put money in FD’s. If it were that simple, then we would have been out of business before I could have finished typing this.

But for those who have always felt that their timing skills are pathetic and that they end up losing almost each time they invest in equities, I guess is that over the next few weeks, their chance to enter and make money would be high. The only problem – which is as old as man himself is with an emotion called ‘Greed’ – he/she wants to almost always catch the peak and trough and proclaim that he is Buffet’s granddad.

But for this emotion, I think for that bunch of people who missed the bus in December 2011, chances are that he could have a chance to invest around those levels could come true. So fortune favors the brave, and one must remember that the bus timing are limited and you just cannot push your luck by skipping busses for the choicest of seats, just hop on to enjoy the ride.

Today’s session was akin to a mini sell off and now is on the back of EU nations still trying very hard to do everything possible to find a solution to the imbroglio. There are consequences for oneself and other on actions when each one of us is standing closely on a ramp and similarly whatever happens to EU in terms of QE3 and monetary easing would definitely impact us asset markets. As has been in the past, the driving force of our markets has been and would be (till the near future) foreign funds flows. The effect of huge fiscal stimulus would definitely impact our / global asset markets.

So while today’s session looks like we are going back to stone age, actually this might the umpteenth time that we are getting a fresh bus to board, but if we “assume” that this will keep happening forever, then we are just making an ‘ass’ of ‘u’ and ‘me’

So time not to fret, take a deep breath, close your eyes and take the plunge.



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