Here is what a Safal Niveshak tribesman, Mr. Ramanand, wrote as a comment on my previous post…
“Reading all this (article and comments), as well as various traps such as “Growth Traps” and “Value Traps”, is it any wonder that the Stock Market is just a bunch of “traps” to any investor without a specific edge over others? Specific edge can be things like insider information, front runner, market operator, full time disciplined trader etc.
I just read an article in Yahoo today on Macro vs. Micro by Deepak Shenoy. This is another nail in the coffin of any person wishing to invest his hard earned money into the stock market. If even value investors cannot do a reasonable analysis due to so much uncertainty, is it any wonder that retail participation in the equity markets is declining day by day?
So now, on top of concerns like share price/value, market capitalization, company position, pricing power, market share, growth rate, EPS/ROC/ROE, and management competence….you have to additionally deal with unethical management, corrupt auditors, fudged balance sheets, fake earnings, hidden liabilities…and *NOW* you also have to worry about dollar exchange rates, govt inaction and policy about-turns, oil price shocks, terrorist attacks (both domestic/elsewhere), diplomatic relations *between* foreign countries (India may not be involved at all), Spanish Interest rates(!??!), Greek Utility companies payments (?!??!) and what not.
I’m beginning to wonder whether it is worth remaining in the Markets! Wouldn’t I be better off investing my savings in tangible assets (to protect against inflation), suspend my recommendation services, close my demat/trading account, and stay away from the stock markets for good (of course not making the mistake of coming back just because they went up after a year).
What do you say Vishal? Is this a real possibility now?
Mr. Ramanand, here is my humble reply to your observations, doubts and questions, which I believe must be shared by a lot of other investors as well.
Here’s my presentation titled “The Return of Uncertainty”.
For better visuals, expand to full screen by clicking on the button at the bottom-right of the slideshow.
If you can’t see the presentation above, click here to see.
Let me know your feedback on the same in the Comments below.