The biggest reason you should not invest now
In this issue:
» FIIs maintain their stronghold on Indian companies
» List of expensive stocks just getting longer
» China needs to consume more, US needs to invest more
» Gold will be the last one standing
» ...and more!!
------------------------------ Now or Never ------------------------------
This is your last chance... to get access to our long term stock portfolio that promises to multiply your money 4-6 times in the coming 5-10 years.
We're offering you a fantastic deal... probably our best ever. So, don't miss out on it.
But you have only till 5 PM today, after which this opportunity will disappear forever. Read On...
---------------------------------------------------------------------------
00:00 |
![]() |
|
Well, if you find yourself as the one who wants to make money from stock markets to repay his or her credit card or personal loan, or for that matter any short term loan, you must stay out of the stock markets!
It is important to understand that stocks are not money making machines as these are made out to be in bull markets. Stock prices can be violent in the ways they move, and it does not take enough time for markets to crash whenever it sees problems on the anvil.
So, the heart of the matter is that if you have a short term debt to repay and are looking at your stocks to bail you out, stop looking at stocks at all. A sharp correction in stock prices can just compound your financial problems. First repay your debt, then invest in quality stocks...and that too from a 5-10 years perspective.
01:04 |
Chart of the day | |
![]() |
01:25 |
![]() |
|
02:01 |
![]() |
|
In fact, the consensus among economists is that this stimulus is likely to do more harm than good. For starters, the Fed is hoping that more quantitative easing will drive down interest rates. And induce consumers and businesses to spend more. But the current rates are already at an all time low. And consumers are hardly spending. Plus, there is hardly any headroom for the Fed to reduce rates any lower. The fear is that in the future this kind of easing will only magnify asset bubbles in other markets, raise the specter of inflation and spark currency wars as the dollar devalues.
More importantly, stimulus itself is not expected to have any positive effect on the US economy. Already, the US deficit has reached alarming levels. And so, we wonder why the US is hell bent on loosening its purse strings especially when its European counterparts are beginning to tighten up their act.
03:07 |
![]() |
|
The world's central bankers seem to be taking a very theoretical look at things. They believe that by engaging in quantitative easing, just the right kind of inflation can be created. An inflation which will make people spend and take the world towards renewed prosperity. Hence, these bankers are printing money left, right and centre. However, such an approach is full of risks.
The ability of financial markets to overshoot cannot be emphasized enough. And if at all there is overshooting, the economy will become even more fragile and unpredictable. Amidst such a scenario, gold is the only metal that will be left standing. Hence, it will not hurt if a certain percent of one's investment is put into gold right now.
04:06 |
![]() |
|
04:42 |
![]() |
|
04:59 |
Today's investing mantra |
Today's Premium Edition.
Recent Articles
- All Good Things Come to an End... April 8, 2020
- Why your favourite e-letter won't reach you every week day.
- A Safe Stock to Lockdown Now April 2, 2020
- The market crashc has made strong, established brands attractive. Here's a stock to make the most of this opportunity...
- One Stock that is All Charged Up for the Post Coronavirus Rebound April 1, 2020
- A stock with strong moat is currently trading near 5-year lows.
- Sorry Warren Buffett, I'm Following This Man Instead of You in 2020 March 30, 2020
- This man warned of an impending market correction while everyone else was celebrating the renewed optimism in early 2020...
Equitymaster requests your view! Post a comment on "The biggest reason you should not invest now". Click here!
11 Responses to "The biggest reason you should not invest now"
NLEH KAMBLE
Mar 19, 2011is there any correction in market .plz let me know with good reaon...........
ningappa
Nov 14, 2010dear sir,
Ihad burnt my fingure in last 3 year
now i have 2 lacks only
guid me how to allocate in whichn stocks for multybagger or good returns
Manish Modi
Nov 11, 2010I feel no one can time the markets. We should invest in good stocks at every level. I mean whenever we have surplus cash. However, I agree that a first time investor will be at greater risk entering the market at this level.
JS Pandher
Nov 10, 2010Dear Sir,
If I invested Rs 1 lac in Coal India Ltd and reaped a benefit of Rs 39000/- what mistake have I made? Similarly, IPO of Bedmutha gave returns of more than 100 percent.Was it bad? I am confused.
ratneshwar prasad
Nov 2, 2010how has stock markets behaved earlier in times of hyper inflation?
neonate
Nov 1, 2010Is the stipulated currency war situation deliberate? making chaotic situation to necessitate the change from current currency regime into a global currency. Like the move to introduce Amero!
Search wikipedia.org- North American currency union
govind
Apr 21, 2011After have burnt my hands in the stock market i learnt that because i burn my hands some body is cheerful good luck to them