1. At beginning of this year we wrote an article "Timing Matters"
2. Earlier this month, we warned that we are witnessing "topping pattern"
Did you take any action!!!
Nifty continues to dive lower, where will it find support!!! Are you prepared for the possibility of bear market ahead? Bold prediction, Isn't it!!!
1. US FED commented on tapering off their bond buying program considering that US economy is doing well
2. Indian markets were showing signs of weakness based on number of stocks participating in the rally
3. 2014 elections outcome uncertainty, it is typical to expect lot of volatility in the markets
4. Indian GDP is slowing down every quarter suggesting slow pace of the economy
Most likely we are done with the BULL market which began in beginning of 2012. Considering the uncertainty of elections next year, we believe market will be entering a confirmed bear territory within next 3-4 months. Time to look at alternative investment options such as liquid funds, debt funds, etc.
What does it mean for our Investments?
- Mutual Funds - If you are still invested in equity funds then stay put patiently and wait for the bounce. Most likely we shall see a bounce within next 3 months which would be our absolute last chance to get out of the equity markets. If you are already out of the equity markets then look for debt funds and while your are doing research park the money in liquid funds or liquidBEEs.
- Stocks - We already warned you to stay in cash or have strict STOP LIMIT in place. When market is in pullback or correction then its wise to stay in cash.
Market is in correction mode, stay alert...