Sensex closes below 18000…on it’s way to 16000?…what should you do?
Sensex Closed own 333 points at 17993….now below 18000…on it’s way to 16000 ?
Ominous noises…FM says increasing NPAs worrying…RBI Governor warns the fiscal deficit will be higher…Higher Interest rates will impact Corporate Earnings going forward….IPO Debacles…issues withdrawn and listings below issue price….FIIs flows see sawing between inflows and outflows this year…net outflows @ US $ 3 Billion this year 2011 with the Sensex down 12%
In Brief what should your Equity Portfolio Approach and Strategy be now ?……
Short Term Traders and Speculators….High Risk to adopt Long Positions in the Short Term…..Shorts a better idea…but do keep an eye on FII Flows…the trend is your friend and currently it’s weighted down…both momentum and sentiment
Long Term Equity Investors…..Stay Invested but review your Stock Selections and be true to your risk profile and be disciplined in asset allocation and portfolio rebalancing exercises…Exit and Avoid or keep to a minimum high risk selections less they play out the risk of permanent erosion in value
Those with Equity Investible Surplus available….Stay in Cash awhile…Selections will be available cheaper in June and July 2011