It’s a bull run when… [infographics]

Yesterday I got a call from my close friend; he is a banker – heading loan department. Before even saying Hi-hello, he said “I have 2-3 lakhs to invest for 6 months, please tell me few good stocks.” I was NOT surprised/shocked & told him, you called the wrong guy. I know he was frustrated at the end of the call but I can’t help. (before election results he told me that he is planning to sell ESOPs)

This conversation reminded me of this awesome article “It’s a bull run when…” by Mudar Patherya that was published in Business Standard. I have just picked few points & created this infographics… Here you go….

Bull Market

Please share, if you come across something similar happening around you in last few weeks or if you remember something from last bull run 2004-2008.  

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21 COMMENTS

  1. i understand the funda very clearly….

    do not track the sensex…

    stick to your SIPs for x no. of years(for your financial goals)….

    with your goals start nearing, systemetically withdraw frm equities to debt or other safe avenue….

    do not check NAVs daily, not even monthly….

    markets will surely perform in the long term….

  2. What to say about others, i am also thinking to invest but hesitating to invest in shares.

    but i believe on a rule that ” Do not buy when price is moving higher”

      • Hi Hemant
        I am a govt employee, working from last 5 year.
        I started my financial planing before 3 year and invested in SIP.
        My monthly investment in SIP is Rs 5000/- And Rs 10000 in to PF.
        I have some FDRs as well as A money back policy of Rs 15000/- P.Y
        I also have Term Plans up to age of 65 years.
        Apart then above i also have enough cash balance for emergency.
        For medical emergency, my company take care for all the pills and bills.

        So now i am thinking to raise my funds in Gold/Silver and Properties bcz there price are stable and lots of option available in our basket.

  3. Nice one Hemant!
    True…. It reminds the proverb that you had quoted in one of your article,
    “Investing is a mind game”. very true.
    Now I know what exactly it is 🙂

    By the way, thank you for all your articles so far and the great work so far.

  4. I am an insurance agent of rural belt since 1996.In 2007 most of my customer asked me about the ulip policies whether the invested amount would be doubled in just 5 years or 3 years. Eaven they did not believe my openion of the risk factors and my advice to be invested for 10 years. Hearing my openion some of them went to another agents to invest in it.
    Also I remember the openions of some eminent stock market guru-s in a popular financial website who told that market might be reach at 30000 when the P/E ratio reached to 30. No one in that website adviced to sell all stocks an to sin on cash.

  5. stick to good companies only n dont buy junk as only good companies can rebound over a period of time……but its the lust of daily upper circuits which is always hard to resist…..!

  6. Sir,I have 20k with me. There is no other savings as I exhausted everything for house construction.got insurance for both.have a 3yr old kid..after semi n monthly expenses iam left with 3k only..wat best could be done so dat repay my loan asap..also guide me on investing dat 20k in mid cap or something else

  7. I enjoy your lessons..Thanks a lot . i am referring many to invest wisely and all i am asked is “what u hv quoted in ur article”,tell me few scripts…………I hv learned it in a hard way in teh last two day sbear run …exposure ..not studying enough..blind soeculation..trying to time th emarket ….thank God ..it was a mangeable loss…. the lesson (which i know),but i learnt withexperience …..is ..which i would like share with all frineds ,who want to enter the share,MF narket is …1) BE DISCIPLINED (IF U R NOT DO NOT ENTER ) 2) BECOME A FINANCIAL LITERATE AND MORE KNOWLEDGEABLE 3) DECIED YOUR FINANCIAL GOALS

    Thank you MR. HEMANT….You are making a difference in the life of many…

    regards

  8. I don’t know the ABC of all this investment, please guide me. I have only 2 to 3000 per month for invest, I don’t have any life or medical insurance policy.

    • Hi Rajeev,

      First of all buy a term plan for your family. Your term plan should ideally be 10-15 times more than your annual income and take it for the number of yrs from your current age till your retirement age. Take atleast 5 lakh rupees family floater medical insurance. If you have 3 thousand rupees then invest in diversified mutual funds like Birla sunlife frontline equity and ICICI value dicovery fund. split 1500 Rs each in these 2 funds and increase the amount as per your salary increment. Good luck. Define your goals. All the best.

  9. yes concur with the views..but the bull market is no where near the 2007 2008 bubble…FIIs are always aware hence sellng more than buying..DIIs are buying due to the SIP culture coming with more than 5000 crs every month from retail..also SIP coming from EPF channel into the ETFs…In summary the valuations are high but not midn boggling..and the inflows supporting them…but the mood is cautious and not all are just buying like the skys are falling

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