TIME TO BUY????????????

It was panic selling all around the world in the last week of October 2008.Nobody knew which market was following the other, as it became a vicious circle with one falling after another.Then came a sharp pullback of 30 to 50% in most of the markets in a quick time before grinding lower again. The Friday(21st Nov) rally starting from Hongkong, minutes before the Indian Markets opened, threw a surprise to many in India after a fall of more than 400 points in Dow on Thursday.Again it looks like a temporary relief rally after 7-8 days of continuous fall.

Now the question in Every body's mind is, when and where will we see the market bottom. While the numbers swings widely from 1600 -1900 for nifty and 6200-6900 for sensex, there are a vast majority who are convinced that there are screaming valuations in many front line and mid cap shares. But still only 1 out of 10 are buying and a lot more who actually wants to buy dont have the money to buy. And as it happens always near the bottom, those who are having money to invest prefer to keep quite, while many others are selling their shares either in fruastration or on the hope that they can buy them back at lower prices later.

I am of the opinion that the October low of 2252(NIFTY) and 7698(SENSEX)may not be broken deeply. I would put a 75% chance for the same. I am reasonably convinced that it is time to build one's portfolio and not worry about the bottom which is only a number. I am of the opinion that with a downward risk of 10-15% there are many stocks which can give a return of 50 to 100% in the next 2-3 years. My assumption is based on quite a few factors which I can not divulge in open as it is my source of income.

So go ahead and start buying in small quantities and on the days of sharp fall. First identify the shares you want to buy and make a clear plan of investing. Or else contact me at sairam_1983@yahoo.com

HAPPY INVESTING.