The operative word is long-term - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

The operative word is long-term

Nov 21, 2003

Out of the last six trading sessions during the current month, the indices have lost ground in four and gained in the rest. The fall in the four sessions has been strong indicating a corrective mode on the indices. The biggest question in everyone's mind at this point is likely to be whether this correction is here to stay or have we seen the worst of the same? Our view remains the same, while the bullishness is expected, the pace at which the markets have risen is unwarranted and hence a correction is the order of the day in order to ensure that the rally is sustainable in the long-term.At this point of time we would also advice investors to review their investment objectives in order to ascertain whether they need to stay invested or not. We also advice to tone down the expectations form one's investments. We need to understand that in every bull market, and especially this one, the valuations metrics to a certain extent are neglected and this leads to unrealistic stock process, that in the long term only harm the retail investors. Remember the equity markets inherently carry higher risks that most other asset classes.

While we caution the readers, we would also like to point out that, equities as a long-term investment option works the best. And in this regard the Indian economic growth as well as foreign investor interest in the Indian stock markets may hold promise to the domestic investors. We must also understand that the government has been carrying out various reforms in most of the areas like banking, pensions and power. This is likely to benefit the economy in the long term. Remember the operative word is long- term.

Historically equity investments have performed well only when there has been a long-term horizon in mind. Thus we believe that investors needn't worry about the correction happening in the market as, they will be rewarded in the long-term, provided they invest in companies with a sound business model and a management that is capable to lead the company in an ever evolving Indian economy.

Equitymaster requests your view! Post a comment on "The operative word is long-term". Click here!

  

More Views on News

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

All You Need to Know about the Newly Launched Bharat Bond ETF 2032 (Outside View)

Dec 7, 2021

Bharat Bond ETF - 2032 is a new fund offer that will follow a buy-and-hold investment strategy tracking the constituents of Nifty Bharat Bond - April 2032 index.

Stocks You Should Buy, Even if the Market Falls (Profit Hunter)

Dec 7, 2021

Here is how to approach smallcap investing as markets get nervous.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 7, 2021 12:17 PM

MARKET STATS