NEW DELHI: When domestic stock prices crashed in March, everything went down: the good, bad and the ugly.
Cut to August, stocks across the spectrum seem to be getting their mojo back, even though the fear of a correction looms. So, should you try and lap up a few more stocks, or wait in the wings?
Seasoned investors say timing the market is futile. Here are some ways which, they say, can ensure one come out of such situations unscathed.
Known for spotting some of the lesser known smallcap gems, value investor Arun Mukherjee has one tip for investors: bet on firms that can grow consistently over next 10-15 years, and not those which would spike in a year or so. “Consistency is more important than speed of growth. Market is very fond of such companies and rewards them handsomely,” Mukherjee says.
iThought co-founder Shyam Sekhar has a way of knowing if you have picked the right bets. He says it is inevitable that your stock will also crash when the market does, but if it participates in the growth-driven rally, then you know you have picked the right one.
Behavioral finance expert Morgan Housel says the way businesses need to learn to differentiate between the reckless and the bold, the same applies to investors too. Once you master that art, it can define your success both in investing and in business.
Market veteran Vijay Kedia shares a hard truth with investors. “Market, like life, is a compromise between your feeling and reality. At every stage, you have to quit your feeling and accept the reality,” says he.
But even as the market moves up, everyone knows all is not well with the economy. Independent market expert Sandip Sabharwal in a few tweets tried to point out the fragile state that the economy is in.
Should this make you more cautious while investing? It should.