Monday, May 12, 2014

Pre Election Result Market Rally

Pre pool result market rally….!!!

I was travelling since last 12 days that is why I was not available on my blog in these days. I was travelling across 3 states UP, MP & Maharashtra. I have observed that people are very keen to change in our political system. Markets are at new high as Nifty above 7,000 and sensex above 23,600 with the hope of strong and stable government after 16 May result announcement. The last 10 year our country had witnessed slow decision process, languishing growth and high inflation.

The market expectations are very high and at present no one know the exact direction of the market. Many stocks are still trading from its fair value in spite of all time market high. What should do an investor or trader at this time? It is the common question asked by many of my friends and investors.

In my opinion, election result is an event like other events. For long term and SIP investors I would like to say that the short term moment in the market may be sharp but when we invest in stock market our view should be long term and focus on macro level. We should not put much emphasis on the election result. Investor should stay invested in the market and should take the decision of exit from current investments or change in asset allocation with the help of qualified financial planner and according to your financial goal.

For trader I would urge with folding hands they must put stop loss when they do make any position specially future and option trader. As market my goes towards any direction after election result outcome so be cautious if you are short term trader and want to participate in this event.

Only election result in not the only crucial factor for financial market there are many other factors like inflation rate, IIP data, GDP data, Fiscal deficit, trade deficit, capital inflow, global market and many many others factors. Your sole focus should not only on a particular event. In short term market react very sharp on the events but in long run market reflect the real economy.

If you want more information regarding investment or you have any other query about investment feel free to ask us.
Warm regards,

Arvind Trivedi
Certified Financial Planner

No comments:

Post a Comment