Monday, February 16, 2009

it's time to invest

It won't be surprising if people say that the share market is an incredible thing. We can't' shut their mouth up, just because of a very simple and veracious fact that it's fidelity has been apparently questioned by a variety of expressions - black october,credit crisis,liquidity crunch, Satyam scam,Nortel bankruptcy ..blah!,only to mention a few though.But the information available are not necessarily so as it seems.

According to the market big shot Warren buffet , people should bravely invest when others fear and should fear when others does it bravely , the people here is referred to those who are ignorant about the dismal science .That obviously leaves us with a question, "what does this people do?" I have the answer.These people start investing in the eleventh hour after a lot of vacillation,when the value is at it's peak time. They never try to understand the ongoing market trend.They just do it,may be because their friends had already done it.
People always have false belief over markets.I have seen many people scared about this simple term. Just in time i need to mention about Nazeer sir(sir,though he didn't teach me,but i call him like that) here,who is faculty in a very famous entrance coaching center RAYS in Calicut. I was subjected to a sarcastic opinion about investing when he advised me and Aswin to dig a big hole beside our houses and put the entire money in there so that no one steals it. He was of the opinion that all these investment options available are quintessential examples of frauds and share market is run by thieves. But one thing is for sure no matter however deep the hole (dug) may be,we have to pay the taxes towards the government,if we are earning.They have got a large spade(definition of it's size is out of my scope!) which can counter (dig).
My dad is another example.He used to persistently nag me while i tried to invest. He always says I'm mad . He always questions my money minded attitude appending that he is/was not like me. Somehow i managed to satisfactorily convince him by firmly asserting the facts i believe in.But still i don't have an answer for his question as to why am i taking a lot of responsibilities at this young age of 21 and why am I spoiling my youth.Really a tough one to answer,i really don't !

For those who believe in the potential of Indian economy and market like me, this is the best time to invest in there.Undoubtedly, it's the most appropriate time for the people who are looking for long term benefits. Diametrically it's the worst time for speculation. Never think of playing ducks and drakes in this bear bastion at this moment unless you have the profound knowledge of market.The market will be in the pell-mell of 9000 for a long time . Also on the other side there is no need to think of a scenario in which the market starts curtailing below 8000.RBI would ensure that it does not happen because it simply means that our economy would be in recession which is altogether undesirable.That is an entirely different story. Hence, It's evenly balanced.
But your money is not gonna turn lucrative this year,haply not even in next year.Allegedly, according to market 'gurus',the market may start finding itself high from the next year end onwards which might set stage for a novel bull march.May be a bigger one ,a kind ,our economy hasn't seen so far.From my vantage point money, if invested now, is safe and highly lucrative by the end of the third year.
Also, by investing we are ensuring that more money is available in the market .The same money which the trading companies use in improving their business and thus helps in developing our country.The same money that can curb the liquidity crisis. and recession.So why not we have a try at that. Afterall,it's nice to have our tag on the money being circulated in the economy.

It's nicer to say that we are broke amidst a recession(after investing every bit of money we have). I like it.