1. Indian equity market is poised at a level where it has seen a considerable downfall. Thus the question doing the rounds is that whether it is correct time to invest in equities. Another question which is tormenting the investors is that has the stock markets bottomed out.
2. Thus answering both the questions become difficult in light of present US debacle where Lehman brothers have crumbled under its own weight. To add to the problem is the buy out of Merryl Lynch and planned bail out of AXA by US govt.
3. It is no doubt that Indian stock market valuations are attractively poised; however one could have had gone board provided Indian stock market was isolated in its behaviour and was not impacted by world stock markets.
4. Thus if you plan to buy; than be ready with the fact that market can fall upto 10-15% FOM PRESENT LEVELS. However long term investors have no reason to fear and they can buy stock at recommended prices in this blog. The question of whether market has bottomed out or not is irrelevant for long term traders.
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