Markets in the country are going through a good (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. They have no clue about how the market is doing or whether it is up or down!

2. In the previous markets (pre internet days) 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 –

See more at: http://www.subramoney.com/2008/09/mayhem-in-world-markets-a-summary/#sthash.BH9Yf2Cz.dpuf

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