Thursday, February 10, 2011

Holding a bluechip stock in a falling market

Men said,

You said that there is a possibility of nifty coming to 4k and u also said that investors should hold on their blue chip stocks, if the index had to fall it would be these index stocks which would fall.

My Notes:

On ET-Now, and in the ET-Now Investor Camp (broadcast Live), Nikunj has asked this question: What is the worst case scenario for the Nifty? My answer was: It is possible for the Nifty to reach 4000. This is a probability, NOT a certainty.
I also suggest holding on to your blue chip stocks. Why? Because, some part of our portfolio should always be devoted to equity. This portion is invested in shares, irrespective of market conditions. We do not trade in this portion, meaning, we do not buy and sell it according to market ccyles. We suffer through the inevitable bear cycles (like now) and also gain from the long term bullishnes of the market.

1 comment:

alphabet1 said...

Long term may be as long as last 3 decades of Japan or the last decade of SnP500.
Nifty may as well oscillate within a range of +- 2000 points for next decade, who knows?

Yes, another postulate is that "It i important not when you invest , but were you invested when the bull run started"

So, ponder between the 2 axioms I have stated, and choose your pick.