New season, new lesson! - 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?  

New season, new lesson!

Jul 5, 2006

Life stands (almost) still in Mumbai, the city being paralysed first by the incessant rains and then by the failure (yet again!) on the part of the city administration, which seems not to have learnt any serious lessons from last year's deluge. As far as the stock markets are concerned, volatility and caution continue to rule the roost, as the markets continue on their path of 'hunting for direction'. Volumes continue to be at yearly lows. But with the April-to-June quarter results on the anvil, markets might soon have something to chew on.If one is to take a long-term view, India (and its equity markets) is surely on a growth path. However, we believe that the path ahead will surely not be as benign as has been the case in the past two years (except for the last 2 months). There are enough imbalances hanging like the Sword of Damocles on the global economy - high global crude prices, rising cost of capital, volatile currencies and the bubble-like situation in asset markets. Although we have been witness to some sort of correction and consolidation in global asset markets, the imbalances remain significant enough to be able to strike a strong negative chord anytime. Such is the situation with the Indian economy as well, though with some added issues, like Left-guided politics, high fiscal deficit and a grim infrastructure situation.

As such, we believe that investors have to be patient with their monies. Invest in sound and strong managements and business models and give your investment time to grow. While last year, Mumbaikars, with their undying spirit, taught others a lesson or two about maintaining discipline and balance of mind in times of uncertainty and crisis, this time they are showing how to avoid much risk by not treading too far in the turbulent waters! We shall reiterate here that while neck deep waters are navigable, neck deep losses can sink you!

Equitymaster requests your view! Post a comment on "New season, new lesson!". Click here!


More Views on News

BSE Sensex Surges 707 Points; BHARTI AIRTEL Among Top Gainers (Market Updates)

Sep 25, 2020 | Updated on Sep 25, 2020

The BSE Sensex Surged 707 Points; BHARTI AIRTEL Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at

It's When You Sell that Counts (Profit Hunter)

Sep 25, 2020

How I alerted readers to the impending crash last week.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

How to Save Money by Exiting Stocks Before They Fall podcast (Views On News)

Sep 24, 2020

A penny saved is a penny earned. It doesn't matter where you enter. All that matter is where you exit. Watch this video to identify an opportune time to exit your investments and book profits.

ICICI Prudential ESG Fund: Aims for Sustainability (Outside View)

Sep 24, 2020

PersonalFN briefly explains the newly launched fund : ICICI Prudential ESG Fund.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

How Much Money Do You Need to Be a Professional Trader? (Fast Profits Daily)

Sep 17, 2020

In this video I'll answer a question I get asked often: How much capital do I really need to trade the markets for a living? Let's find out...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 25, 2020 03:06 PM