These days the equity markets have been going down quite steadily, especially in the last 2 weeks add to that the Rupee tumbling to new lows.. and a lot of us investment advisors are actually facing a lot of free time and actually for a change this is not a free time we are having out of choice or something we like. Some like me spam FB half the day since business is slow !
Also it is during this time when all advisors get together and are always complaining how bad is the Financial Literacy in our country where most people don’t understand anything outside FD, Banks, PPF or Post and how badly even the so called equity investors behave. We all mourn together on a tea stall ! :-/
I just came across this amazing stat forwarded to us by HDFC Mutual Fund and was awestruck how badly do retail equity investors behave. I couldnt help but share it here with all of you !
As you can see in the above table the retail investor was crazily buying equity funds in March 2008 at the highest P/E. If you were following the Sensex you will certainly remember that in January 2008 the sensex touched 21000 !! Since then when the markets have gone down and the P/E’s are shrinking in the last 4 years (2009-2012) the cumulative inflow of retail investors in Equity Funds is negative (-6000) crores !!!!
In short the retail investor is time and again mistiming the markets, he invests in good times and runs away in adverse times where as he should be doing exactly the opposite.
I would just like to remind you what Sir John Templeton said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria !”
Needless to say that there is only pessimism that we see all around, but times will change, I am sure.
p.s for anyone who is even more keen to learn & know about the current market trends I can mail you the complete report by Mr. Prashant Jain Fund Manager at HDFC Mutual Fund.
I guess the art of constructing a post has just deserted me, the patience to just look in one window and type a post and recheck it for spelling and grammar mistakes is something I have lost out on, multiple windows like FB, Twitter, Scrabble, Money Control, Cricinfo, Reader and multiple blogs ensure I am never having that enough peace I require to make a post and I thought maybe I should re address it.
When I see R’s Mom and Smitha so easily write posts day in and day out I kind of am amazed how they remember things and their ability to weave words that keeps atleast me intrigued . In my case most of the posts when they like ding in my mind I don’t either have the computer with me or maybe am busy at that time and when I sit on the window with a new post I can’t recall anything. Add to that the lunacy that goes on in FB that it kinda ensures I am having so much fun I eventually shut the blog down and resort to leg pulling.
But I have resolved to post almost everyday no matter how trivial and if I can’t post something everyday, I’ll still keep trying ! I have been clicking photographs galore so I can always use them up . I actually am most horrible sticking to resolves and so ofcourse I will not be able to continue this trend forever but atleast I can keep trying to post as much as possible. Somehow somewhere probably this will lead to more posts and I can be back to those days when I could churn out a post out of nothing err… useful !
Recently I did encounter a rather laughable and vague situation with my former boss who is a pretty good friend too, he was planning to go to Jim Corbett for his summer holidays and we were meeting pretty frequently for finalizing his travel I was his free ka travel agent and I kinda like being involved with travel programs whether I am going or not . Btw free ka bole to no paisa but lots of snacks thrown in ! Before I digress too much after almost an hour of slogging to finding a tempo traveller from Delhi to Nainital to Kausani to Corbett and hotel bookings and Jeep Safari bookings and train ticket bookings we both got out of his office and were headed for a smoke. Now below his office is perhaps Bharuch’s most famous Pani Puri Wala (Bool Boooli) and so I suggested, “Chalo ek-do plate paani puri khaatey hain !” and his reaction to it left me stunned ! :-O
My boss just told me, “Jaa bey, Paani Puri to Ladkiya Khaati hai !!!”
I was like :-O I haven’t seen a more ridiculous and feeble effort to try and save money… !!!! What rubbish I said and promptly told him I am having it and he is paying no matter what ! Eventually he almost out-ate the Ghost who Eats but don’t you worry my dedicated followers !! I didn’t let you down ! I ended up gobbling about 5 plates and he about 4