Sunday, September 18, 2011

What Does Stock Market Needs to Rise

An average layman would tend to see Blue channels or tips of friends to make his investment decisions, most of us have been through that phase. But these tips dont make you money until and unless they come from seasoned investors or traders. And anyways you need to know when to call off a trade.
So just to make things little simple ---- before investing in stocks everyone should ask oneself some basis questions ---- this is macro way of investing opposite to the bottoms up investing

  1. How does the growth of the economy - global/ domestic look like for the next year or so
  2. What is the interest rate regime --- is it near its bottom or peak --- because that is going to affect the margins
  3. What alternate investment classes are doing? Are they undervalued compared to stocks 
  4. What has been the interest in buying in last few months --- is the asset today overowned or underowned 
These questions are not the exhaustive list but few pointers... ofcourse everybody has their own way to invest.... 


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