We are not experts in timing the market. Nor do we believe that such a strategy yields safe returns for retail investors. On the contrary, trying to time the market for both buying and selling stocks and other asset classes can be a very risky proposition. For stocks in particular, it is a proven fact that long term value investing can yield better returns than market timing. Investors who have bought good stocks cheap and held them for long term have reaped richer return than those who bought at troughs and sold at peaks. In fact a single bad timing could wipe out gains or multiply losses in the investor's portfolio. Hence be it stocks or gold or any other asset class, it would be a good idea to invest based on long term fundamentals rather than market sentiments. It would also not be out of place to suggest that investors could spread their purchases over a period of time rather that than buying at one go. In times like these when the risks outweigh near term return s for most asset classes, one cannot exercise enough caution. Hence doing enough homework, keeping a watch on asset allocation and keeping patience with one's investments can be the best way forward.
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