Saturday, November 19, 2011

STOCK INVESTMENT STRATERGY WHEN STOCKS FALLING






It is an old saying that every storm does not last forever. It is all true for the stock market which is now in a bearish mode. From the last half an year all the indices of the markets from all around the world has come across a double digit correction. The stock prices of the various blue chips stocks are around the half the value of their usual value.

It was October 2008. Everybody was looking to get as far away as they could from stocks. Not only the stocks, but also anything that is remotely connected with the stock market like ulips and mutual funds.
But while everybody was busy getting out of stocks, one person was busy putting all his money into stocks. And this person was none other than the legendary investor Warren Buffett.
You can also a return on your investment in the stocks like that of 150%, 200%and much more.



The same is the scenario at that time. Every investor whether with a deep pockets or one with smaller amount to invest is in a state of fair. Some even are exiting the markets so as to not to make further loss.
But this not the way to do with your hard earned money. After 2008 financial crisis when stock market recovered and share prices rises who earned from that rise in prices.

It is well known fact that markets will give you sure and good return in a longer turn.

But also every stock have not given a return or even has not risen.

You have to invest your money in small amount at all levels and also that too in selected stocks.

Invest only in fundamentally strong companies and they must have surplus of cash in their books.

Invest by this strategy and see your investment after sometime will yield double returns surely.

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