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Greed & Fear |
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Dody
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| 25 October 2008, 12:28:00 |
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In times of market excesses the first casualty is rational analysis - especially when market sentiments dictate investment decisions.
Strange is the way an investor's psyche works. It is easier to convince us to put money into equity when the sensex is at 20,000 than at 10,000.
Put in a nutshell: Greed @ 21,000 and Fear @ 10,000
Consider this, about 30,000 crs of Equity MF were sold in the Industry below sensex levels of 10,000 (over 5 years between January 2001 and January 2006). These are the investments which are still making money. Compare this with over Rs 92,000 crs (more than 3 times) of Equity MF that were sold in the industry above sensex levels of 10,000 (between February 2006 and August 2008). Most of these investment are drawing negative returns now.
The market has again provided an opportunity to invest. |
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Re: Greed & Fear |
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Pramod
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| 26 October 2008, 23:21:11 |
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yes, its true, most of the investor easly invest money when the market is high and they don't invest when they have invest. now a days sensex is around 10000/- most of the company's valuation is very low
historically. as per the sir wareen buttet. Be fearful when others are greedy and be greedy when others are fearful. in this volitile market situation only investment through sip in m.f. is the best investment vechile. for this a article published in Business standard dated 25/26.10.08 is very best.its imposible to time the market. equities have historicaly given very good returns over a three to four year or even a longer horizon. if we assueme the india will grow by 7% for a couple of years then only very good retunrs can get easily. its important not to get too greedy and let out after making money. |
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