Change of guard....

Recently my friend told me that in Bull market you should be more optimistic than others and in Bear market be more pessimistic. Frankly i didn't agree with this, because this looked like a strategy to lose more money in the market irrespective of the conditions. An improved version of the said strategy is that in Bull market be less optimistic than the market (so you dont buy everything that comes your way) and be less pessimistic in Bear market (so you dont lose good opportunities). For eg. BIOCON even in this market is looking good (Disclaimer: this is not a stock tip, pl do your homework).

The time has come when we ask ourselves the most fundamental question: " Why do i Invest in stock market?".....and the answer is to make money. This is much better than saying....to make quick bucks!! If the market is turning out to be an expense account then start afresh. The inflation is falling and hitting new lows. Surely an indicator of rally in bond markets. Again i am against floating rate bonds and in favour of g-secs. This should beat the market. This calender year has seen a drop of 5% in bond prices that means there is an opportunity in the market. I am targetting 12-15% returns in Bonds and g-secs. Very ambitious target but last year an unthinkable return of 27% was given by the sector ( some good funds gave more than that). 

Do not take a fight with someone who has got nothing to lose. Stock market has nothing to lose, but you have. Stay away from it for some more time. Dont get tempted to buy stocks in a rising market 'coz fundamentaly nothing has changed in last one week. Please don't assume that current rally means revival of trends. 

I had mentioned earlier that Automobile sector will do better and it did work due to undervaluations. It may outperform for some more time. Pharma is looking attractive and so is media. But very selectively. 

Elections are round the corner. Another coaliation bomb is in the making. Lets fasten the seat belts for a bumpy ride ahead.

As sure as the spring will follow the winter, prosperity and economic growth will follow recession. We have to deal with it bravely.