Death of equities? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Death of equities?

Jun 30, 2008

There is bad news everywhere. Inflation is on a rise on the back of sharp spike in crude oil and food prices. Interest rates rising as well thus adding to pressure on household expenses and corporate profitability. The domestic economy is said to be entering a 'cyclical' slowdown phase. The global economy is 'actually' facing an acute banking and financial crisis. And the stock prices are going down the drain, literally! The BSE-Sensex is lower by 35% from its all time high achieved just five months back. Now, this is just the benchmark index. There are innumerable other stocks that are down almost 80% and 90% from their highs.

  • Also read - Hidden Treasure or Tragedy?

    Ice age for stocks?
    So, have we entered a stage of 'ice age' for the stock markets, where investors go numb and stocks stop rising at all (and continue to fall)? Have we just seen the 'death of equities'?

    Think otherwise...
    We are of the belief that these times are providing you with investment opportunities of a lifetime. The global offshoring opportunity, India's US$ 500 bn infrastructure spending over the next few years and rising household consumption on discretionary items (like communication, transportation and entertainment) are just a few that you can look out for as evolving wonderful investment themes for the next 5, 10 or even 15 years.

    So, what should you do?
    The need of the hour for you, as an investor, is to get ahead of the trends, both existing and those that are yet to unfold. You need not let the current environment fool you. Hold on to the quality stocks that you own. In fact, buy more of those, if they've fallen a lot. However do not borrow to buy stocks, at whatever attractive levels they are trading. Do not indulge into trading in derivatives. They are 'financial weapons of mass destruction' as Warren Buffett once famously said...and rightly so!

    Have faith in your portfolio of quality stocks and your decision-making capabilities. Be convinced that in the long term, the market is always going up. It always has. Sometimes, it can be difficult to see beyond current circumstances. Your investing success lies in getting over this very difficulty.

    As Buffett says, "A great IQ is not needed to do well as an investor, just the ability to detach yourself from the crowd."

  • Equitymaster requests your view! Post a comment on "Death of equities?". Click here!


    More Views on News

    Top 5 Recent IPO Developments You Should Know (Views On News)

    May 12, 2021

    So far in 2021, IPOs in India have raised nearly US$ 3 bn, the best start to the year since 2018.

    How Did Mindtree Perform in Q4FY21? (Company Info)

    Apr 20, 2021

    Here's the rundown on the company's latest quarterly results.

    How the Regulator Is Ensuring That You Can Make an Informed Decision When Investing In Debt Mutual Funds (Outside View)

    Jun 17, 2021

    SEBI recently introduced a dynamic scheme classification concept of the Potential Risk Class matrix for debt funds based on interest rate risk and credit risk.

    Top 5 Stocks Mutual Funds Bought and Sold in May 2021 (Sector Info)

    Jun 17, 2021

    A look at what India's top equity mutual funds bought and sold in May 2021.

    Why is Bullion so Volatile Now? (Fast Profits Daily)

    Jun 17, 2021

    Why have gold and silver prices become volatile recently? Find out...

    More Views on News

    Most Popular

    Hotel Stocks Will Reward Investors (Fast Profits Daily)

    Jun 8, 2021

    This is why I'm bullish on the hotel and hospitality sector.

    My 'Unlock' Investments (Fast Profits Daily)

    Jun 11, 2021

    The best unlock investments you can make in the market.

    The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

    Jun 9, 2021

    Investing in the best stocks could result in wealth compounding on a massive scale.

    How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

    Jun 11, 2021

    Charlie Munger's open secret about investing success.


    India's #1 Trader
    Reveals His Secrets

    Secret To Increasing Your Trading Profits Today
    Get this Special Report,
    The Secret to Increasing Your Trading Profits Today, Now!
    We will never sell or rent your email id.
    Please read our Terms


    Jun 17, 2021 (Close)