http://www.iimahd.ernet.in/~jrvarma/blog/index.cgi/Y2008/FE-Bubble-in-backyard.html
Rea
Indian Stock market turmoil - What lies ahead??
It was not long ago that all of us were interested in equity and were proud of our equity/ mutual fund investments. When the fall started in Jan'08, most of us held on or added more to our portfolio thinking that this downturn was a short term phenomenon. Come October, We are left to face with reality .It's hard to believe that we are below 10k levels. Even SIP investors should be in deep red now and wondering what to do.
Equity is as such a risky investment and when we see a bull run lasting 3-4 years, we get over confident and start pumping more and more money into it. This happens always during the last phase of bull run. We tend to forget the bear phase when we invest during the peak periods. But at these times, we should also remember that we get bogged down too much about the negative news around the globe.
There should be light at the end of the tunnel and patience is the only virtue that can keep us going and bring us some good returns in the long run. With the US and India elections on the way, we cannot expect any great upward curves at least in 2009. But in a couple of years at least , the dust should settle down for more clarity. It would be difficult to say whether we will be back to 21k days any sooner or later. But we have to believe that things should get into better shape once the dust starts settling down.
Every body wants to make money out of equity but no one is ready to face uncertainty or downturns. ( It's like everybody wants to go to heaven but no one wants to die). Time and patience is key to solving any problems . So, lets wait patiently to see this crisis too going away!!.
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