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
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
