Patience

Its a bad, bad time in the stockmarket.

But remember, those of you who are ruing your losses, nobody who has been in this maket for over six months has really lost any money, your profits have been trimmed. The market has run up for the last year and this is time for reconciliation. Yes, for those who have entered as recently as three months, there has been a real erosion of wealth.

My advice is the same - Patience. For retail investors, this is the time to switch off from the market for a few days. This bear market will pass soon enough and you will begin to see the profits. So, take a break and have a longer horizon for maximum returns. Remember Warren Buffet "In the short term you can make money in the market, but in the long term, you create wealth".

Those of you who are sitting on cash, this is the time to enter the market. Many good scrips are now available at good valuations, so its time to stock up on these. But do check the valuations and the fundamentals of the company before buying up. Do not try to time the market, for no one can catch the bottom. Companies like Reliance, Punj Lloyd, GMR etc are looking quite good.

Reliance Power has been a bad experience for all investors. It was a double whammy, not only did the IPO bomb, it took down the market with it.
Many shareholders of Reliance Power booked loss on the first day and that was the reason for the fall. Today, the market was punishing Anil Ambani for dashing their hopes, thus one saw a decline in ADAG shares, specifically Reliance Power and Reliance Energy.

Those with gumption and courage can indeed pick up both these shares. The market has a very short memory and soon enough both these shares which are available at good valuations will start racing up. But this time, do book part of your profits and sit on some cash when the market starts riding high. Then when the next fall takes place, you can do some bottom fishing.

Good Luck next time !!