For instance, take a look at the period between 2005 and early 2008. During that time, there was a general sense of euphoria prevailing in India what with the country consistently logging in growth rates of 9% plus and the stockmarkets zooming to 21,000 levels. And then this optimism snapped.
The global financial crisis reared its ugly head and sent global economic growth and world stockmarkets including India into a tailspin. Suddenly there was nervousness all around. Forget bad stocks with bad fundamentals, investors in India were loathe to put in their money even in good companies available at attractive prices fearing that prices will fall down further. Then 2009 dawned, signs of recovery began to be noticeable and stockmarkets surged once again. Those who missed out on the current rally are now waiting for the next round of correction to start putting their money to work again.
The idea really is not to time the markets. That is a feat best left to speculators. For long term investors, even at present when overall valuations of companies seem on the higher side, there will still be some stocks that they can look to add on to their portfolios. These stocks if picked at the right price by following proven approaches can turn into multi-bagger opportunities.
At Saral Gyan, team of equity analysts keep on evaluating small cap stocks to explore Hidden Gems. Saral Gyan - Hidden Gems are the stocks with high probability to become multi bagger stocks in future and a path for our investors to create wealth through equity investments in a long run.
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