Its fun to watch the market these days’ analysts making disclosures, investors taking positions or rather trader based on the budget and cabinet formations. The sectors that I personally feel should grow will be railways stocks , infrastructure stocks, fertilizers space, manufacturing sectors PSU banks and the steel segment but not the iron ore , the above sectors will definitely get impacted by the Modi policies .
But I prefer to to follow the below rules from Peter lynch and they are applicable in all the forms of market across the globe.
- Your investor’s edge is not something you get from market experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
- Over the past 3 decades, the stock mkt has come to be dominated by by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd.
- Often there is no correlation b/w success of a company’s operations and the success of its stock over a few months or even years. In the long term there is 100% correlation b/w the success of the company and the success of the stock. This disparity is the key to making money: it pays to be patient, and to own successful companies.