"The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Over last few days we saw friends observing Lent, Ramadan & Navratri. Today we are celebrating Ram Navami & couple of days later we will be celebrating Mahavir Jayanti. If something common can be drawn from all these is the most essential virtue of surviving and thriving in this world which is – Patience & Preservance. Be it observing fast during Navratri, Lent or Ramadan or life of Lord Ram or Lord Mahavir Jain – they all teaches us how patience & preservance penultimate in Nirvana. We all are working to survive, thrive and ultimately achieve the financial freedom or Financial Nirvana. And to achieve this nirvana we are investing in market related investment products. While in the long run most market linked investments achieve their true value but in short term it’s market prices are determined by many forces, some of which
"You only have to do a very few things right in your life so long as you don't do too many things wrong" - Warren Buffett History offers references and provides basis for creating theories to help decision making in future when facing similar conditions. So does the stock market history. Analysis of stock market movements considering various parameters – fundamental or technical, provides basis to create investment theories to help analysts & investors reasonably estimate the future and take investment decisions. The mistake we generally make, we dive deep into history for seeking references and tend to ignore recent past, it’s events and movements. The most asked question with respect to investing into stock market is about its valuation and if this is the right time to invest now or I should wait for some time. To check if the markets are fairly valued or otherwise, analysts use various parameters like market cap to GDP ratio or price to earnings ratio (P/E) o