Retail investors actually have an intuitive sense of what they should be doing with their money. Retail investors have shunned stocks and equities as asset classes for the last one year.
Retail investors actually have an intuitive sense of what they should be doing with their money. They have shunned stocks and equities as asset classes for the last one year. On hindsight, they have not done very badly with that decision. They have been studying equities over a 15-year period and have figured out that equities is not the beast unlike what brokers and mutual fund managers keep saying.
In CNBC-TV18's special show, Investor Camp, Sudarshan Sukhani of s2analytics.com, Sanjay Sinha of Founder Citrus Advisors and SP Tulsian of sptulsian.com share their views on the equity and commodities market.
Below is the edited transcript of their views.
Sanjay Sinha, Founder Citrus Advisors says, "Everyone wants a better life. And we see investments or the way we manage our finance as a route to a better life. We all understand that no asset class in history has behaved in a very orderly manner. We are all impressed with the way gold has performed since 2008, but if you look at the longer period history of gold price, it has not been very impressive."
However, it isn't only market that has a bearing on the returns earned. Politics too play a major role. SP Tulsian of sptulsian.com says, "In the next 12-15 months, once we know the general election date, then we can crystallise the timeline, but as of now I am presuming that elections will happen in March 2014. So, if one presumes that March 2014 will be the election time, that means one will be seeing the new government by May end 2014. Then there will be atleast a couple of months to see the Budget, presentations and the policies of the new government. So, one can expect the next 15 months to be really very volatile, cautious, crucial, painstaking, filled with opportunities. One can't just say that it will only be the risky way going into the market."
Sharing his views Sudarshan Sukhani of s2analytics.com says, "Last week, at the Golden Jubilee celebration of Bangalore Stock Exchange (BgSE) I met a guy, who said to me 'Sir, I had bought Reliance Communications at Rs 800 and it is now at Rs 55, so what should I do?' It is very difficult to answer this question. So, I told him to just forget about it and as nothing can be done and selling it wouldn't make any sense. Then he said something which hurt me a lot. He told me that he had put his entire capital in it. I can’t imagine somebody buying a share at Rs 800 and seeing it come to Rs 55 with his entire capital in it. Who knows what might be going on in his and his family's mind. That's not the purpose of the stock market. The purpose of the stock market is to enrich us, to give us reward, it is not to literally loot us out of our capital and wealth, but unfortunately that is what has happened for the best part of the last six to seven years."
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