Right time to buy

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2 years ago
Topics: Stock, Money

Stock markets across world have been devastated by Russia Ukraine crisis. Crude has crossed 140 dollars per barrel and is wreaking havoc with the fiscal math of countries and individuals. Inflation has got more entrenched in the minds of people( meaning that people are taking decisions considering Inflation to remain in medium term). And corporate profitability will take a hit in coming months as demand has been muted by Inflation and adding to the problem is cost push which was bad due to corona pandemic has been accentuated by war in Europe. But in all this gloom the silverline has been the devastated markets or for budding investors time to buy.

Markets hate uncertainty. But I think in these turbulent times lies the heaven for young investors. Young investors basically are tormented by experience ones in early phases. When a new investor enters markets all kind of anomalies exists be it super expensive stocks or cheap ones. Most of the time these anomalies are the making of experienced investors who for their own gain form these traps.

But I feel turbulent times are the time where all experienced investors tread with caution, leaving markets with pure valuation. Here again some stocks would be cheap while others expensive but that basically tells about how big investors had their position across stocks.

So let me elaborate by giving my example as how I have taken position. So there have been many sectors which have been directly influenced by war. Crude, gas and other primary products have been the victim. Rise in prices has made demand muted but at the same time made few firm competitive as earlier they were making it costlier as per international standards.

Rather than betting on any commodity I preferred service as they were least affected by this war. I looked into information technology sector but stocks were expensive. Then I looked at banking sector while few private stocks were available at decent price but I rather looked at public sector.

Here I liked one stock which reached great heights recently and was making constant and rising profits. But due to war it shed 20% of its valuation, so I felt it was right time to invest and I spent 13k in that particular stock. I bought 30 of it.

Stock didn't gain instantly, for two days it stayed basically where I bought it but now it has gained 1% and expectations are there that it rise by 30%. I have shared my knowledge and experience. I hope it clears the air for all budding investors who learns and take lessons from what approach I took.

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2 years ago
Topics: Stock, Money

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