So the market is falling down again, is it a good time to buy right now or wait for it to fall further. This time we have new problems like Chinese Economy not doing well, Oil price crash. It’s the classic old wine in a new bottle. The Indian/Global economy will always have problems from time to time. What matters is how you take advantage of it. Coming back to the original question of whether it’s a good or bad time to buy or not, well the answer is yes it is a good time to buy.
There are some good companies which are currently undervalued as per the Valuation screener, there many bad ones as well which are selling cheap. We have been buying shares of quite a few companies. (Long term members can easily guess the names of two of those companies). Some of the companies we are buying are in Banking, IT, Pharma and Auto Ancillaries sectors. We stay away from Infra and real estate sectors.
The follow up question is always will the market fall down further and to be honest with you, we don’t know but what we do know is that the companies which we are buying right now at undervalued valuations we will get a good return long term.
So what should you do, if you have the tenacity then start looking at the financial charts and valuation models and start buying the good ones. If you want the easy way out just buy the Nifty Bees ETF or a good mutual fund.
If you think that you should wait because you “know” that the market will go down in the next few weeks then you are free to wait but then just remember you are speculating not investing.
PS – Please do not call/email us for personal financial advice or stock tips.