I have always wondered how the market tends to go up and down in it’s own way. The market men seem to toss it up and down any way they like. Sometimes I wonder how many people try to become part of it. In my opinion the market seems priced ….quite overly and excess and I would believe it could crash and fall in subsequent sessions, more so that I could buy at low prices and feel proud at the end of the year with great gains. On hind sight, I believe this is an exciting bull run that I can tell generations to come all about as we moved from an interesting positioned 19000 BSE to 25,000 and rising over just a couple of months. Companies of Gujarat, getting a seemingly rumored benefit of having the PM elect and now the PM of India, from Gujarat. I am sure, had the PM been from anywhere else you would see those companies being sold of faster than a drop of a coin, and suddenly finding the market moving downwards.
The market game, is a bunch of people who seemingly drop stocks or buy stocks the way they wish – trapping retail investors …well perhaps trapping the inexperienced investors (Traders!) and allowing the retail investors (long term) to not care and continue finding good picks. The only time the long term investor gets hurt is when a seemingly doing well company’s stock suddenly zooms upwards for no reason, much ahead of it’s predicted book value price. This is when it hurts the most – Div Yields go from 4-5% to as low as 1% and for a Div. paying company this is surprising since the once upon a time company is no longer priced where one can accumulate from the dividend, and it’s PE goes above everything it was ever meant to for that particular year. Speculators take control and then the long term investor has to wait and wait for the price to correct – which might take a few months or years. Eventually, when it does correct it makes no sense.
Just thinking out loud.
-Written by Shivam Parikh