The Quarter ended – Oct, Nov and Dec 2011 will perhaps see the worst results. This is because this is the Q that will see the full impact of high interest rates, the worst economic data (cause and effect are very difficult to know), bad mood, …etc.
When these results are announced, people’s worst expectation WOULD BE OVER – so the market will start moving UP, not DOWN.
This is not a guess or wishful thinking, nor am I saying this is etched in stone! There are a few shares that I have short listed to buy – and my target is an ambitious 12-14% p.a. over the next 5 years. Which means the share bought for X today should be 2X in 5 years – or 6 years, and assume say 2-3%p.a. yield of dividends. I just bought some shares in the past 2-3 days (these shares are already in my portfolio, so it is not really any fresh investing, at least intellectually!).
2 of these shares flared up a little ahead of the results – Cholamandalam and Cummins – and the returns already got in a week is stunning – but that was sheer luck.
I think instead of concentrating on the index, if you keep looking at battered sectors, good looking companies, neglected sectors, etc. there are some good deals there in the market. Keep you head on your shoulder, expectations low, do good quality research – even the basics – and then you could find them. However if you do not wish to do the ‘effort’ part, just put your money with a good fund manager (to whom the CEO listens!!) and bet on the country’s future!
Too lazy to do that also? There is always an index fund!!
Remember in 2011, the Index beat Warren Buffet also.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.