Thanks Columbus for explanation.
But some things i want to point out and explain further . Any bear market which comes after 5 or more years of bull run has a normal tenure of 12-18 months . If we consider our bear market even from Feb 2008 then it is not going to end in this year 2008. So it may not be the right time to go for long term investment in my view.
If any one want to track which may be the right time to invest than track nifty or sensex monthly chart . They are not oversold yet. RSI in monthly charts of Nifty is 46.34 . And it is slow process will take some time to go into oversold position i.e. below 30 then it will bounce back from below 30 to above 30 , at that time any one can think of long term investment . And that time may be you get stocks much more cheaper from current valuation.
Devan
Devan,
Thanks for info on RSI. Two months back,RSI came down to levels of 30 for about ONE month.
Later on it climbed to 70 levels in next 15 days.Now we are settled at 40.This is for market as
a whole not for individual stocks.For individual stocks.So identify a good stock, buy it ,in small
lots.If declines, don't worry,add some more .This operation should start once it reduces to
1/4 th of HIGH attained in last couple of years.
Somehow I have fascination for stocks with BV greater than 100, low equity and 10 FV stocks.