The markets remain unhappy for 16 days a month. 10 days are market holidays. The brokers remain unhappy. The traders remain unhappy. The family of brokers and traders are unhappy because the brokers and traders are unhappy. The investors remain worried. Whenever they invest , they stocks go down. Whenever they sell their holdings their value go up. And yet we share posts on the social networking sites where it speaks of inner peace and how important it is to have great health than great wealth!
Are we happy? No! Human beings living in 21st century have learnt to develop scepticism. And it augurs well for them! They are not at peace with themselves. And the reasons are not difficult to find. When there is so much of disbelief, so much of distrust , you tend to rely on the experts and the analysts , who feed you along with the media what you do not want. And this comes from greed. But being greedy is not bad. Trust me ! I repeat, being greedy is not bad at one. But like discipline in all the phases and aspects in life, we have to discipline our greed too! Let me put it this way that disciplined greed is the single most important criteria for financial health, and ... mental health.
Disciplined greed? What is that? Is this man talking nonsense ? May be? It is not The writer who is promoting the idea for the first time! Legendary investors have done it that is why they are legendary and worthy to be followed! Our respected teacher Mr. Warren Buffet have more than once reiterated the same idea which I have referred to as disciplined greed.As goes Mr Buffet's saying “Be Fearful When Others Are Greedy and Greedy When
Others Are Fearful”! So has the time come for the investors to become greedy? And has the time come for people to invest sufficient amount of money in the markets? If you want the answer look at your own market. As for some concrete examples let us look at the Indian bourses. They are currently trading at 16-17 forward looking P/E. Look at the markets in the united States. These markets are also trading , believe me or not at the same 16-17 forward looking P/E. Are they cheap according to your belief? If you think they are then go and invest! As far as experienced people are concerned , they may say well the markets , in no way, look cheap!
Now I had put emphasis on the need for disciplined greed. And when I said so I meant that it is important to curve your impulses , rein in your emotions of both greed as well as fear . Waiting for the opportunity to buy the right stocks at a reasonable price and holding them for a long, very very long period of time. Sometimes the waiting period is so very long. The market does dot provide such opportunities for a long duration. And when it does we are not ready! Because we do not have sufficient cash to invest in. Or we have invested all of them whenever the market has rallied between 5 to 10%! Opportunity to invest comes trickling and we have no container to collect them. This is the very reason that we must learn to restrain ourselves and wait. This waiting should be very much like waiting for the dream person of your life. She won't give you opportunity everyday but when she is ready and looks at you be prepared to hold her hands and give her a determined Yes!
Now what are the current problems in our hands that is troubling the markets around the world? Here is a probable list of some of them!
Bitter pills:
1. United States not willing to accept a higher interest rate regime!
2. The BREXIT imbroglio!
3.Devaluation of currency in Russia and Japan!
4. Job creation data worldwide!
5. Unemployment data worldwide!
6.GDP data worldwide. China is slowing. Only exception is India which currently have the highest GDP growth at 7.5%!
7.High market valuations!
8. Worry of noises made by doomsday predictors!
Benign world climate:
1. No sign of bubble yet!
2. No signs of high inflation!
3. No signs of extreme consumer spending!
4. No sign of a bloody war in immediate future! Touch wood!
5.No sign of extreme political struggle!
6.No sign of military coup!
7.No sign of prime crisis!
8. Oil prices low
9. Gas prices low!
10. Metal and mineral prices low!
11. Steel prices reeling under pressure!
12. No sign of behemoths falling or going bankrupt!
And still worried? If you are serious about equity investing wait till the BREXIT imbroglio gets over! I am sure there will be great companies available at a bargain rate!
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