Better safe than sorry!
I read this small piece of information in one of the articles which I found very interesting:
"Investors were irrationally exuberant during the bubble years of 2000. And that's exactly why the shrewd market players today should be feeling confident. Look at it this way, "Six years ago we could do no wrong, and everything was possible in the world. Today everything seems exceedingly challenging. We were wrong six years ago. And I think we could very well be wrong today." In Stock Market, it most often pays not to follow the leader. No one wants to hear that. It's almost irresistible to believe that after all we investors have endured -- the hellish bear market, the recession, the scandals -- we've emerged from the crucible sadder but wiser, finally willing to face the truth about stock values. But it isn't so. The amazing reality is that we haven't learned our lesson even yet."
Though the above quotes are mainly related to US Markets, in Indian context, it may not be that relevant. But as an intelligent investor, with Sensex currently at 9000+ levels, utmost caution must be excercised while investing at these levels.
Here, a famous quote by Warren Buffett comes to my mind:
" Be fearful when others are greedy and greedy only when others are fearful."
So, let us better be safe than sorry!
More comments are welcome
Living in the US I have seen the stock market crash in year 2000. I also recall how analyst ( from big investment banks) would come out and give bold and high price targets on certain internet stocks.
I think Indian Stock Market is definately gone to levels that seem unrealistic in short term. But I also feel there is a longer economic growth cycle going on in India, which one can benefit if one is a long term player. When the selling occurs in short term and price are right it could be buying opportunity.
You have to almost have to ask yourself if the Sensex would double in next 10-15 years and I feel pretty confident about it.
Posted by
Anonymous |
11:57 PM
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Posted by
AC Investor Blog |
12:13 AM