My fav question now a days to any person who has interest in stocks market is that---Where is the market headed..?? These are few answers--
- Markets will bounce back in first Quarter 2009.
- Coming months are bad.
- Stay away from market for now.
But I have now seen that Indian market is famed for going against what all think...The Indian market has not fallen real bad even after all the US banks collapse. However if the SENSEX comes down to 10-11k, then it would be a bad time..The sensex would reach 2-3 yrs low.
Personally where the markets are headed should not affect a long term investor, the Indian economy is headed the right way, so if you keep on investing regularly, then in probably the next 4-5 yrs one should be able to make some a return which exceeds the current rate of return in fixed deposit.. The best part (lure) with stocks is that the income is not taxable..(income on investments more than 1+ yrs old)