Thursday, August 25, 2005

Investing in a Bullish Market

With the Sensex at an all time high are retail investors confused (what to invest in, what to sell and what to buy), are in danger of loosing their investments? The stock market is unpredictable anything can happen but every analyst would say

'Invest in a company whose fundamentals are strong'.

But then how do we take advantage of market sentiment? Make a quick buck but not at the risk of loosing our hard earned money. I guess it’s not possible to have the cake and eat it too.

What Retail investors fail to realize is that

1. Institutions are index movers and have access to information and research inputs.
2. Market prices are not indicators of the fundamentals of a company.
3. Market is speculative and not rational. There is no fixed formula... at times its better not to determine a formal process or formulae because it just does not exist.

It is difficult to choose a stock at this stage and very difficult to differentiate between good and bad investments. It’s a difficult line to tread. I guess at this stage the best option is to get some professional help[analysts, stock brokers...].

I am no analyst but these are some stocks with great fundamentals.

1. ABB [Read Outlook Money for detailed information on this stock]
2. Bajaj Hindustan [It doing great and has a great prospect, good business model and demand]
3. ICICI Bank [Speculative]


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