07/06/2010
'KARAM KARO' ! BUY ON EVERY DIP.
The entire fraternity of stockmarket traders & investors in today's scenario are faced with a fear psychosis of allocating their money into equities because of the extreme uncertainty faced by the western world especially the euro nations faced by huge deficits on one hand and grave unemployment on the other hand resulting in a serious threat to growth, inflation & financial stability in the coming years. The other joker in the pack is China where fears of asset inflation are resulting in government intrevention to slow the economy, sounds like doomsday with a double dip reccession looking more of a realty now.
The only silver lining in the current scenario is the Indian economy with its strong macro fundamentals, strength of its domestic economy, huge receipts by the government on the 3G auction front & sizeable amounts of money expected from PSU divestments thus giving it visibility of growing its GDP by more than 8% for next few years. However here too due to interlinkages with the world economy we are faced with certain risks specially in commodity cos & infrastructure cos where a lot of spending is dependent on external capital flows & also outflows by FII's from our bourses due to flight of capital to safety, thus causing an enormous amount of confusion amongst investors.
The strategy for investment in this peculiar global scenario is to invest 60% of your equity exposure in Nifty bees or any Index mutual fund & the balance amount to be allocated in Mid-cap stocks which we at analyzeequity.com would recommend to you from our stock idea section so with high volatility likely to continue the only thing an investor can & should do is
'KARAM KARO'! BUY ON EVERY DIP.