Markets are down for the past few trading sessions and are likely to be down for a few more days. I believe everyone know the reasons, if not it is majorly because of the FII's pulling out money from markets which may have happened to our domestic reasons[policy making or current account deficit] and may also be partially due to western markets becoming attractive. The reasons can be many and i am not the best guy to write on this subject.
I did a check on my portfolio[which is necessary] when the markets are down for 8 trading sessions and see that my portfolio returns for this year stood at 6.7% compared to 2.57% in my earlier post.
Well there was marginal fall in the shares i hold [like cera] but due to the gold holdings in my portfolio [gold value increased in the past couple of weeks] the portfolio returns improved.
It feels good that my portfolio did not crash but i think it is just by chance.
Currently as we see most of the papers write about markets in front page,most of the people say its better to stay away from markets. I personally feel these kind of situations open up opportunities for retail investors since there will be lot of good business available at a decent price. These kind of markets can also create great businesses available at good price.
If you are an investor who can evaluate stocks then its time to look for business who had good returns in past three years with strong management and have scope to do well in the next five years. Select the stocks mostly among big companies which can assure good returns in the next few years to come.