Analyze Equity

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.

Analyzeequity.com is an effort to help you, interpret markets. People base their decisions on two basic analysis, Fundamental and Technical. Both of which are extremely important for trading and investment decisions in the markets. Fundamental analysis is the basis of any investment to be made, quality of management, cash profits, return on equity (roe), return on capital employed (roce), earnings per share (eps) etc. Reports by research analysts are based on these fundamental parameters, by which they arrive at a target price/fair price of a stock. As they say, the only thing constant in this world is change and so according to us at analyzeequity.com the most dynamic parameter is what price earning ratio to assign the stock, i.e. Know More >>

These 10 commandements are aimed at making regular/steady money out of stock markets on a regular basis and not extraordinary money or wealth. These rules are collection of my thoughts. These reflect the stock markets through my eyes. These are not directed at anyone as much as it is to provide another way of looking at stock markets. Please disregard the above 10 commandements if you are doing well and making tons of money. Know More >>