Markets in the country are going through a bad phase for sure. However, it may be an opportunity to buy if you are optimistic.

The main worries are –

1. There is a large sales force today far, far divorced from the end customer! They have no clue how the money is collected, aggregated, and managed. However, they have a target, have a commission and they run door to door to collect money. Their solutions are so oft repeated, they may start believing them!

2. In the previous bear market the brokers were far, far more careful compared to todays’ Relationship Managers.

3. There is too much of aggressive product pushing – the greater the commission for the distributor, the harder the push!

4. In the olden times brokers looked at value investing during a bear market and at growth stocks during a bull market – now people change asset classes. So markets may go through faster cycles. However, investors will lose large amounts of money because of their own excessive trading.

5. Media is creating volatility. Hence the chances that a common man makes money in the market is getting tough and tougher! Only way the investor can make money on the stock exchange is keeping away from the media

6. Start with a prayer, it helps

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  1. Staying away from the media is sound advice but putting down all curtains may not be.

    While one may consider shutting down the eye that is glued to the television, do keep half an eye open to what appears in print or on the internet.

    Putting ones head into the sand and hoping for the storm to blow over will only blow you away.

  2. I got 2 financial journos who called me to ask “How come Washington Mutual Fund” failed. I explained that Wa Mu is not a mutual fund. One another journo said “I am happy they think of it at least as a finance company, and not a basketball / baseball team”. Not really inspiring correct? Scary, if you ask me.

  3. Point conceded.

    I did not know either whether Washington Mutual Fund is a mutual fund or not, even though it carries a misleading title.

    You prove a point – don’t trust the media — and keep off.

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