Financial Planning

Sensex crossed 29000, What Next ?  Every time sensex crosses new numeric level, the same question arises in everyone's mind, right? At 9000 sensed level suddenly we all feel, it will go to almost zero and heard someone saying market will get close one day, but it didn't happened ? Right ? Same way now at 29000 level, people feel it will cross 30,000 and then cross 1,00,000 soon ? Really ? Can you predict the same ? Businesses do not stop like that. So how this numbers really comes from ?

As we always say, simple things are always tough to implement. When we talk about shares of a particular company ! The first thing which comes to everyone's mind is business that company is doing? Right ?  Now let us understand, when a company is making a product say for example in rs. 100 and out of that 20 rs is profit they make on one product. If the price rise / if inflation goes up and  now the same thing is costing them rs. 100, then they will not reduce the profit to zero and sell the product right ?  the business owner will pass that inflation or price rise to the end consumer and they will not reduce the profit. so when you invest in shares, the inflation always gets adjusted in equity as explained above.

I Can Make Huge Money In Stocks If I Invest Directly: - Somebody told me last week If everyone makes money in equity, then why there are only 3% of investors in the stock market? and rests are into FD's, Gold, Real Estate, and all?  You may be right, Say for example, if you have started investing in equities in 2007-2008, what you may have bought? Reliance Infra, DLF, Suzlon, Orchid, Rcom, and so on..... (They all were the talk of the town).this is better known to the investors who already burnt their fingers.  I must throw some light here – they all are below their investment price- some are even less than half the price. It’s always said, Retail investors never make money as big as Seasoned Investor makes(the one who does research or invest for long term through mf), retail investors come into market when other runs out, they would love to buy stocks when its already in bubble phase and sell it when actually, its time to buy stock, or in investment language