| The follies of marketing timing
Many investors try to "time" the market by "buying low and selling high." In theory, that's a great idea, but it's almost impossible to put into practice. If you try to outguess the market, you run the substantial risk of guessing wrong – of buying stocks too soon, before they get even cheaper, or of selling stocks too late, after they've fallen from their highs. But these are only the most obvious of the problems that can result from market timing. Here are some others to consider: You could lose your investment discipline. The best investors are the disciplined investors. They choose quality stocks and hold them for the long term, through good and bad markets. In fact, they have conditioned themselves to ignore short-term price swings in either direction, based on their belief that their patience eventually will be rewarded.
Midcap action likely to continue through the year: Deewan
According to Neeraj Deewan, Director of Quantum Securities, FMCGs may not outperform in the long run and the year should see more of midcap action and lays his best bets on media and capital goods. Excerpts from CNBCTV18s exclusive interview with Neeraj Deewan: Q: Two stocks or rather the sector that seems to have outperformed over the past few days has been FMCG. Your thoughts on Hindustan Lever and ITC at current levels? A: Frankly, we have not been very bullish on FMCG because it has been under-performing for quite sometime. So if someone has bought them as a trading or an investmaent idea, I feel some sort of profit taking can be taken - because going ahead also, I dont feel that it will outperform the market in the long run. So there are other sectors that might outperform rather than FMCG.
Buffett's Rail Stakes, American Home, Gazprom: David Wilson
April 10 (Bloomberg) -- Warren Buffett has at least two good reasons for investing some of Berkshire Hathaway Inc.'s money in North American railroads. Here's one: Shares of Burlington Northern Santa Fe Inc., the second-largest U.S. rail owner, and its biggest competitors aren't all that costly relative to earnings even after a four- year advance. And the other: Companies on both sides of the U.S.-Canada border are increasingly buying back stock. The repurchases lift earnings per share and demonstrate that railroads are confident about their prospects. Buffett must be optimistic as well. Berkshire amassed a 10.9 percent stake in Burlington Northern and displaced Marsico Capital Management LLC as the Fort Worth, Texas-based company's largest shareholder.
Options Trader: Tuesday Morning Ideas
Finally, the bulls will be right. Then the bears will be right, then the bulls, then the bears…kind of makes you wonder why we bother, but much like Bugs Bunny and Daffy Duck, someone is bound to get shot if they pick the wrong stock. Today we here from Alcoa Inc. (AA) who, like New Hampshire, gets the spotlight to kick off the Dow. Also in the running this week are Bed Bath & Beyond Inc. (BBBY) (peek under the sheets of retail), Genentech, Inc. (DNA) (looking good), General Electric Company (GE) (ho hum - another Q, another $5B), Hansen Natural Corp. (HANS) (high expectations), Independent Bank Corp. (INDB) (spillover anyone?), Infosys Technologies Limited (INFY) (Dude, where is my tech job?), Krispy Kreme Doughnuts (KKD) (always fun), MGIC Investment Corp. (MTG) (good read on mortgages), Rite Aid Corporation (RAD) [is Wal-Mart Stores, Inc.
Time to Sew, and Time to Rend
The recent correction in stock market gives investors a good opportunity to re-assess their expectations from their investment portfolios and also their tolerance to risk. When markets are in a bull run, investors are rarely aware of the risk they are exposing themselves to. But it becomes all too apparent in a crash! Being an optimist and believer of market cycles, helps maintain that it is never too late to correct ones mistakes. Excessive volatility in portfolio values may be attributed to many factors: 1. Problem: Concentration Antidote : Diversification
If your stock portfolio has a small number of securities, then undue change in value of any of them, will excessively impact the total market value of your portfolio.
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