Monday, October 01, 2007

Sensex Ki AAG

Would Gabbar, the bear……be back?

Does it make a difference….. ?

We are clearly in a secular long-term market in terms of fundamentals.
If you look t India from a real economy perspective, then you will see
that we fairly insulated from the world markets in term of global flow.
There is tremendous participation from the insurance companies and
domestic mutual funds at these levels.

Even if Gabbar becomes hit and gets hold of the market, its probably not
going to run like Sholay. It will be over quickly. The market doesn't go
up in a straight line, there are ups & downs along the way. It may not
start going back, up right away, but sooner or later it will turn back
upward.

So how do you defeat the Gabbar (Bear Market)?

By investing for the Long Term

Bryan Oslon has righly written "Imagine a cross-country car race that
starts in downtown Manhattan during rush hour. One racer sees bicycle
messengers speeding by in the stop-and-go traffic. Becoming impatient,
he jumps out of his car, trading it for a bicycle. Once out of
Manhattan, as other racers still in their cars pass him, he quickly
realizes his short-term decision was unwise in light of his long-term
goal of winning the race. It may seem rather silly for this racer to
trade in his car for a bike, yet investors do the same thing every day.
They lose sight of the strategy that it will take to get their prize.
Although many investors claim to understand the benefits of long-term
investing, their actions often show a short-term focus".

How so ever menacing the bear market might turn into, Long-term
investment strategy only will triumph over Gabbar.

So stop predicting the arrival of Gabbar, there's still lot of Aag in
the market, which will continue burning.

Happy Investing!

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