Types of Investors right now

Hello All,

Warn welcome from Shah Stocks. I know many of the investors are really confused about where the market is heading to, many of you are even afraid about the future of the markets. Forget about FII's and Big institutions. Lets focus and try analyzing the domestic investor and general public thinking. 

I am trying to categorize different type of investors available in the markets at the moment.

1. EXPERIENCED LONG TERM INVESTORS: The ones who have been holding the stocks since long, over few years. They need not worry of such downtrend as they know these knee-jerks are part of Stock market and it will be recovered soon. They will wait patiently and invest after the downtrend is over and the consolidation starts. 
They don't mind giving a lil Higher price but they would want to be very sure that the market they are investing in is worth. Trust me, they are the most experienced people of the market and so they will be using the Best strategy to invest in stock markets. Investing money in parts in every Dip they feel will be recovered.

2. NEW & LATEST ENTRANTS: The ones who have invested recently because stock market was doing so well. After the recent downtrend, they have been thinking I don't wanna invest in Stocks market at all due to such unpredictable moves. Its better to keep FD ans get regular returns or do SIP maximum. Advice to such fellows: Its understandable that this things bother massively as after all, its hard earned money but its like a kid when he learns to walk for the first time. He gets bruises and he might fall few times, but over a period of time, it will stand still. If you are patient in stock markets, and you have invested in good stocks with good fundamentals and great future outlook, you will be rewarded. 

3. YOUNG ASPIRANTS: The ones who were thinking they missed the great up-move that already came in the markets. These will be the ones who will take this opportunity to get into the Stock Markets and Trust me, the volume of this type of personnel are Huge. There are so many people thinking they haven't invested in the market and its too late. For them the Dips in market will be the great opportunity to enter. Also the best thing is the latest results will be available with them when they invest, which will make their investment much safer. 

Please NOTE, that a HUGE HUGE amount of money which wasn't considered to be the part of economy (Black Money) will be coming into STOCK Markets over next 3-5 years. No other investment is as fruitful as Stock markets at the moment; may it be Real Estate or any other Commodities because government is imposing restriction in all of those things. 

There are always good stocks available in the markets. You need good research and patience. I doubt you will be making any Loss then.

Domestic inflow in the stock markets will be Huge in coming few years. 

India's Long term Growth Story is intact and I feel, this will take BSE to 40,000 and Nifty to 14,000 in coming 2-3 years.

Cause of RECENT MARKET DOWNTREND.!!!

Hello everyone,

So its been a  BAD week for all the Investors holding LONG position. Many of the Investors have had a foot-back when they saw 2-3 days of bloodbath in Stock Markets. Everyone wants to know the reason, why sudden Fall in a BULL market?

The reasons as you know are obvious. 

Major being the Geopolitical Tensions globally. 

Other than that Earnings season of the companies. Most of the companies has suffered achieving the estimated Sales, reason being the Transition to GST. 

When this wasn't enough, SEBI barred 331 companies (out of which ban has been lifted from 8 companies) to be traded on giving them a tag of 'SHELL COMPANIES'. Yes, this is a great step indeed as many investors will be benefited from such steps as even at this age, they dont know where they are investing. But before taking this step, SEBI should have added few more filters. Sentiment turned more negative with this kind of move. There are some renowned companies which have been listed in this and its really unhealthy for any company's outlook to be considered as Shell company.

As I come from business oriented family, I know how the things were when GST was rolled out. He was more tensed regarding the GST thing and the focus shifted from Growing Business to GST. And these was applicable to all small or Big companies. For once, it was in the mind that lets clear all the backlog and then wait for further clarification on GST. Due to this, atleast 10% of the business was suffered negatively even in Large companies and much more when considered smaller companies. 

Now this wasn't enough and the IIP numbers are out, whcih definitely wont be looking good as again, the culprit: GST Rollout

"IIP Numbers verdict: Factory output fell to a four-year low and contracted by 0.1 per cent in June with poor performance of manufacturing and mining sectors.

This is the lowest growth since June 2013 when the Index of Industrial Production (IIP) contracted by one per cent.

In contrast, IIP grew by a healthy eight per cent in June 2016. For May, IIP growth has been revised upwards to 2.8 per cent.

Official data released on Friday showed that factory output grew by a mere two per cent in the first quarter of the fiscal as against 7.1 per cent growth last fiscal.

Ahead of the roll out of the Goods and Services Tax (GST) from July 1, manufacturing sector activity contracted by 0.4 per cent in June as against a 7.5 per cent growth last year."

So obviously, worst isn't over. Below is the screenshot of my Folio taken on Friday when most market struggled, it was holding on really great, much above my expectations; to tell the truth.

Similar way many portfolios were holding on strong. Thursday was a bad day I agree, but on Friday, the portfolio which was mildly in red zone in the morning managed to end into Green even in such 
laggard market. 

Reason: Solely the stocks which I have bought posted their earnings report and they were giving the strength to my total folio. This gives the confidence that yes, we do have many things left in the market which can be picked up. Sharing you the pic of my folio here to show its not always bad when markets crash. Its the stocks that you have chosen that matters. 

There are 3 types of Investors presently available in the market. 
Where do you stand in this market and what you should do is the next step? 

Go to https://shahstocks.blogspot.com/2017/08/types-of-investors-right-now.html