Sunday, October 7, 2012

Emerging markets once Again...!!

There are two sides to every thing in Life.What differentiates the winner from the non winner is the patience to wait through those tough phases and emerge with your ethics,beliefs and theories intact.
Such has been the case with Indian markets that I saw a lot of experienced clients and 'experts' lose their perspective about the longterm viability of the economy.Suddenly there is a surfeit of panelists on the business channels once again peddling their high targets for the nifty and sensex.The way termites emerge from the woodwork...
If this does not change quickly then the average investor will lose hope in the 24 hr monologue that is used as a filler by these business channels!
The 9%+ upmove in the nifty in September was not a real surprise,what with Europe managing to somehow hold on and some bright numbers in the US.
Although the rally here was chiefly fuelled by the liquidity released into the system by continuing QEMs by Mr Bernanke and company,I woner when the assets in the US will seem cheap to the PE and Hedge funds based there to consider pulling out some funds from emreging markets and buying cheap there.Till date only The great Warren Buffet has invested(maybe that is why he is the greatest because he gets onto trends even before the trend begins!).
But then I have waited over a year for that to happen.
Till then the nifty looks good as long as it stays above 5600 for short term traders and the momentum in midcaps keeps them moving.Apollotyres,JP Associates look strong for a 5%+ move in the short term.
Those who kept reading my blogs,kept believing the Indian economy or through sheer luck were on the buyside,here and now is the time to book some profits and wait to buy again a little lower down.