It is said that to be a successful & intelligent investor, you must be unemotional.
After recent sharp and volatile bear market, the Sensex is up whopping 75 % since its low in Oct 2008. It is natural for investor to feel happy or relieved about that. But experts believe, instead, that investor should rather feel worried about such events.
At this moment, wisdom says that this kind of mood of highly optimistic, buying frenzy after election result leads to an almost desperate need to believe that the worst is over.
Investors can't turn off his/her feelings, of course. But one should, turn the coin inside out.
Stocks have surely become more expensive to accumulate. Since Oct 2008, according to data from NSE Website, the price/earnings ratio of the S&P CNX Nifty index has jumped from 10.5 to 20.5. That's the sharpest, fastest rise in almost last five-year.
Over the course of 6 months, stocks have moved from the edge of the dust bin to the full-price rack. So, unless you are very rich and dont mind loosing off your investments, you should be worrying.
Intelligent investor should work diligently to resist being swept up in the mood swings of "Speculator" as always predictable the collective mind of investors is euphoric when stocks go up and miserable when they go down. A good investor should always read the enthusiasm of others as a yellow caution light, and misery as a sign of hope.
As famously said by legendary investor Benjamin Graham
"The true investor would be pleased, rather than discouraged, at the prospect of investing his new savings in bear market." Mr. Graham added a more startling note: Investors would be "enviably fortunate" to benefit from the "advantages" of a long bear market.
Today, it is better to cost average, or invest through a SIP which automatically invests a fixed amount every month, as more smart way to invest in such makets.Such a policy will pay off ultimately, regardless of when it is begun, provided that it is adhered to conscientiously and courageously under all intervening conditions.
The investor should not subject himself to exhilaration or deep gloom that have accompanied the with gyrations of the stock market. To be a successful investor, we must cultivate firmness of character" -- the ability to keep our own emotional counsel. That means resisting the contagion of Markets enthusiasm when stocks are suddenly no longer cheap.
After recent sharp and volatile bear market, the Sensex is up whopping 75 % since its low in Oct 2008. It is natural for investor to feel happy or relieved about that. But experts believe, instead, that investor should rather feel worried about such events.
At this moment, wisdom says that this kind of mood of highly optimistic, buying frenzy after election result leads to an almost desperate need to believe that the worst is over.
Investors can't turn off his/her feelings, of course. But one should, turn the coin inside out.
Stocks have surely become more expensive to accumulate. Since Oct 2008, according to data from NSE Website, the price/earnings ratio of the S&P CNX Nifty index has jumped from 10.5 to 20.5. That's the sharpest, fastest rise in almost last five-year.
Over the course of 6 months, stocks have moved from the edge of the dust bin to the full-price rack. So, unless you are very rich and dont mind loosing off your investments, you should be worrying.
Intelligent investor should work diligently to resist being swept up in the mood swings of "Speculator" as always predictable the collective mind of investors is euphoric when stocks go up and miserable when they go down. A good investor should always read the enthusiasm of others as a yellow caution light, and misery as a sign of hope.
As famously said by legendary investor Benjamin Graham
"The true investor would be pleased, rather than discouraged, at the prospect of investing his new savings in bear market." Mr. Graham added a more startling note: Investors would be "enviably fortunate" to benefit from the "advantages" of a long bear market.
Today, it is better to cost average, or invest through a SIP which automatically invests a fixed amount every month, as more smart way to invest in such makets.Such a policy will pay off ultimately, regardless of when it is begun, provided that it is adhered to conscientiously and courageously under all intervening conditions.
The investor should not subject himself to exhilaration or deep gloom that have accompanied the with gyrations of the stock market. To be a successful investor, we must cultivate firmness of character" -- the ability to keep our own emotional counsel. That means resisting the contagion of Markets enthusiasm when stocks are suddenly no longer cheap.
