Back are the days when newspapers will be full of images of brokers cutting cakes and burning crackers celebrating the bull run. But images of investors looking at the trading screen with disappointment fail to fade away. After 2008, Sensex and Nifty have breached the 20,000 and 6,000 levels respectively for the first time. Reports show that the bull run is mainly due to extensive buying by the FIIs. Retail participation is not as high as it was when the markets touched these levels for the very first time. The reason behind this strategy of retail investors who are sitting on the fence and adopting a wait and watch policy may be that they have already burnt their hands when the markets tumbled after the Satyam debacle and the Reliance Power IPO. Also, there are two sets of advices emerging out of the experts for the investors.
The second set of experts say that it is never too late to enter the market. You can still build your position and buy stocks at some dips, banking on the viewpoint that the bull run this time is going to sustain for a long time.
By the time this article is posted, Sensex may have fallen below 19,500 or may even cross 20,500, but the thumb rule remains the same, that you should keep your eyes open towards the returns as well as the risks of investing in stock markets. Avoid being blind to the risk factors when the markets are bullish, after all, your hard earned money matters a lot.
Let the markets rise . . .
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Tags: Stock Markets