Friday, August 19, 2011

Is it the right time to buy stocks?

"Is this right time to enter the market?" is the question which keeps on coming to my mind. Should I wait for some more time? or Should I enter with some percentage of my allocation at this time?. With global data like phile Fed index, crisis in euro region, bond yields in US, inflation in India etc., shows very gloomy days ahead. Should I still go ahead and buy few bargain stocks. I know it's better to buy into stocks at 5000 levels than at 5700 levels trading in May-June. But how do I determine which stock I need to buy?

If you consider US economy slowing down and EURO crisis coming back which sector should be looked into? IT sector got badly hit by news of US slow down, Banking sector got hit due to worries within the sector. Real Estate as we know is rate sensitive and recent RBI hikes and the anticipated hikes in the future will only make the sector more vulnerable. Automobile sector also got badly hit by the hikes and low sales in June-July (btw do you see a lot of Ads related to automobiles offering discounts on TV)

I think, the best option right now is to pick out individual stocks rather than going for a particular index.

Few stocks which impressed me after seeing  stock ticker on a news channel are Suzlon(huge debt), Educomp(recent IT raids), TCS, Lanco Infra...Lets see if I can make some progress over the weekend :)