Friday, January 09, 2009

Markets are one crazy animal and we should never assume it to be rational always. Kargil war gave way to new high for the Sensex but just a resignation of a company chairman in India made Sensex fall by 750 points. As Willliam Wordsworth said, "Poetry is the spontaneous overflow of powerful feelings" and so is with market. It runs on only 2 emotions - Greed and Fear. But fortunately for us, these emotions play in cycles as one follows the other after a period of time is elapsed. As investors, we have to take calculated chances when we see fear dancing in the eyes of others. This is a bear market and time is needed to settle down. If you want to make money in this kind of market, look at things from an investor's perspective. Invest in good stocks, Satyam is not the only face of Indian Corporate Governance, definitely there are better managed companies and these dips should be opportunities to buy them. Good MNCs like ABB, Siemens, PSU stocks like BHEL, BEL, BEML, NTPC, PowerGrid, SBI, ONGC, long-standing managements like Tatas, Ambanis, Birlas, Maruti, ACC, the list can be very long. Tough times never last long, tough people do. Are you tough enough? If you are, go ahead and invest!
What should investors learn from Satyam? Read on here

1 comment:

Anonymous said...

Ambanis have shady corporate governance too ! Till not caught, no one is a thief !

Nice article buddy !