Anybody who thinks Equity Investing is easy, must have thought of Indexing!
If you believe that you can time the market, well, it depends on how long you have been in the markets…hmmm….
1. When there is chaos in the market, it is not a time to panic, but a great chance to buy. When a company announces a strike or lock out for example, it is a great time to be buying that share, not selling it.
When bad news hit Dubai, the Dubai market tanked 13%, and some shares tanked 19%.
Obviously the retail investor was selling.
So who was buying? Mark Mobious of Templeton. He is now sitting on about 200% profits. Not bad, eh?
Similarly when some bad news is announced about a good company, and the stock skids, keep your eyes open. However do remember the company has to be REALLY top quality. If you cannot do this, go by the macro – buy the index. Not too much brain or advise needed to do this!
2. Think Long Term, Low costs, and have Patience: I have said this is so many ways in the past! Wealth is created only in the long run. Sad but true.
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