May this 2013 brings peace and wealth to you in abundance!!
Year 2012 turned out to be good year for equity investor with market rising by 25% or so. Euphoria has again started to build up, with brokerage houses have already started projecting Sensex at 25000 in the coming year. With support of numbers such as historical P/E range of sensex, P/BV etc., brokerage houses are selling the idea of sensex trading at slight cheap valuation.
I still wonder, that if these guys are so apt at valuing the market or a stock, why are they not betting their pants out and make a killing on street.
As far as I am concerned, I am as clueless as you are about the market direction.But considering the global scenario, and Indian market outperforming majority of its contemporaries, the valuations has soared and finding value opportunties will be tougher unless market corrects itself.
With IPO of CARE and PC Jewellers performing fairly, there can be couple more of IPO in the coming season from the companies who are waiting for the right time to raise funds. I wish investors excercise due care before investing and don't get any behaviourial bias from the profits of CARE and PC Jewellers.
I believe, that these times, when opportunities are tough to find, provide good opportunity to re read the golden words of Mr. Buffett, Mr. Munger, Prof. Bakshi etc. and act cautiously, as this euphoria often culminates behavioural biases while analysing and can lead to disaster.
For me, its time to go basics and control my emotions(Lure) to invest. Though I might miss the market rally, but I still want to stick to old school values and search heard for undervalued securities.
Keep Investing !!
--
Tony Stark
(CEO - Stark Capital)
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