Publication : Business Standard, Date: July 19, 2009
Why timing your buys doesn’t matter beyond the short term
After the Budget, the markets went down from 14,900 to around 13,400 in the next few days. Then there was a sudden turnaround and the markets are once again back to around 14,300. There are several reasons that can be attributed to the rise or fall of the index and a lot of dissection can be done. Does it do any good for people planning to invest? In fact the volatility of the markets and some of the stupid buy points that are suggested causes anxiety, and people end by not doing anything.
When the Sensex level went to 12,500 in September, an avid viewer of stock markets said, “These are excellent levels to buy and I am starting to invest.” However, in the next few days, the markets plunged by a further 40 per cent to 8,000 levels. Now, if 12,000 were » Read more..
Publication: Business Standard, Mumbai; Date: July 12, 2009;
On the global front, oil prices and commodities, including gold, corrected sharply on fears of lower demand and weak global cues. There is no apparent recovery in sight in the short term for most developed markets and this is once again putting pressure on equity markets worldwide.
With the budget out of the way and corrections in most asset classes, the question everyone is asking is, what to do now? The Finance Minister mentioned very clearly in the early part of his speech, “The Government recognises the challenges that this task entails, particularly at a time when the world is still struggling with an unprecedented financial crisis and an economic slowdown that has also affected India. While we are determined to convert our words into deeds, members would appreciate that a single Budget Speech cannot solve all our problems, nor is the Union Budget the only instrument to do so.” The FM’s statement indicates the government is likely to surprise by making progressive announcements in the short to medium term.
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