Should you buy Stocks in this Sensex fall?

May 17, 2012   ·   0 Comments

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Markets are falling and have come to 16,000 levels. Read Marc Faber report where he suspects the pain in the market because of the Euro crisis of the Greece. Also, falling rupee adding to the woes of Indian stock market.

http://stockssavvy.comAs investors are finding it difficult to invest in Euro at this point of time and putting their money more into dollars which is making dollar further strong. Because of which rupee is weakening . Weak rupee means money invested in Dollars by FII in Indian stock market is deprecating. Hence, they are pulling out money which in turn is weakening the rupee further. It is like a chain where one reason leads to other.

Question here is with all this hue & cry about Euro crisis and weakening rupee, should you invest in Indian stock markets or wait for the things to settle down or should you invest in safe heaven- Gold. Interestingly, Gold has also corrected a bit from 29,000 levels to 27,000 levels. This is the first instance when stocks and gold both are falling at same time.

Well according to Warren Buffet, you should invest in Stocks when everyone is against them. If you check the surroundings, we are almost there. From news channels to stock analysts, all are talking about more pain for the markets and nobody is talking the opportunity Indian stocks provides for future for next 10 – 15 years.  All are talking about how low we can go and trying to point where the knife will make the cut, trying to predict the bottom.

There is no doubt in my mind, until rupee stops sliding; there will be any rally in the market. It is impossible to find the bottom. We don’t know where the revival for rupee will come. In 2008, when rupee was at 38. People were talking about going it to 32 but it never did. Similarly, today rupee is envisaged to go to levels of 60.

Don’t judge the market by the levels. 16000 is a good point to start buying. Every year I allocate around 1 Lac for Stocks and I bought yesterday 5000 Rs. of stocks by the end of the market. I will keep on nibbling daily if market continues to fall. Below 15k, I will double the amount for my buying and will keep on buying till it goes down.

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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