The fall of 2007-2008 where markets slumped from highs of 21000 to lows of 8000 was a information hoarding era. This disadvantage was very well used by operators to lure small investors to invest there hard earn money in penny stocks with unimaginable and unbelievable targets of 200 to
1000% in weeks and month. We all know this as popularly known 'Tips'. Investors would feel it a fashion statement at time that he/she had got a tip from someone which will make him/her rich overnight without knowledge that his/her very neighbor had invested in the same tip. The operators at that time were so successful in playing with people money that even petty workers like rickshaw and taxidrivers used to exchange tips within themselves and with passengers.
With the fall of market these investors have burnt their fingers hard enough with most swearing not to enter stock markets in their lifetime.
But this 2014 and its totally different. This is the age of investors who are very well equipped with all technological gadgets to keep them fully informed on every minute in real time basis of their investment. Today we see immediate effects to investments in real time very well reflected in the prices of the stocks.
Forget those days that we as investors are going to put money in any tom, dick and harry listed company. We will be investing only after 4 tier assurance that our capital will remain safe with full analytical study of stocks.
This being probably the best reasons for markets will not fall or correct all of a sudden like it happened in 2007-2008. The investors are fairly hammering the valuations of non performing companies and giving fair thumbs up to performing companies. Even if there will be correction the investors today are rest assured that valuations of their companies are fair enough to resist any kind of fall.
Happy Investing to all. Make informed investment rather than lose money to market gimmicks.
Happy Investing to all. Make informed investment rather than lose money to market gimmicks.
