It is strange how quickly things have changed; people wanting to sell at any price and getting back home. It is not easy to take away the wealth from the markets. Didn't someone say that "too much wealth has been made in too little a time".

 

More then the cash equity component which all of us focus on the focus should be on the kind of stocks that we hold. Bearish phases provides excellent space for people to change the bad stocks for the better ones. In other words we can wash our sins in this market.

 

So if you have RNRL and it has been down 40% you can buy HDFC which is also down 35% and walk away without any bad effects on your wealth.Most of us do have this notion of purchase price and it is this purchase price which disturbs us in doing what we should.

 

So just making a list of the companies whose EPS seems unstable over the next few quarters shouykd provide enough clue.

 

Finally even if you are in 30% cash do not let that other 70% fall by 60% because in that case what we will be left with is 1005- 70%x60%= 58%.

 

Please be very careful in choosing the horses to ride on. One worng decision and we could be wiped out because on recovery this market isn't going to lift all boats!

 

 

Quite a few who kept buying stocks like DSQ and HFCL in the fall of 2000 were stuck with what we now know as dud stocks.

 

So while some stocks rallied the older ones faltered and inevstors should recognize the difference between the two.

 

 

Can we identify the stocks out of TED XI that can be bought in switch over in current scenario .....everyone must hv missed some or other stock out of XI earlier because of price factor....say pantaloon or titan...