mnandii wrote:We are in a deflationary environment and people are calling for a bottom this early? Remember my very first post on this forum when I called for the market to fall strongly to below 2600 levels (NSE 20 Share Index)? The market was way up in the area of 5400 points, no one believed the forecast.
These people who are calling for a bottom now will keep entering the market hoping that it bounces. Yet the market WILL go right through their Stop Losses. As I've maintained before: DO NOT HOLD ANY STOCKS at all at this moment.
When the right time to buy will come 99% of people will not have the guts to do so!
Most likely the market will dispense with the huge supply volumes then the slow motion downturn will resume in due course.
This particular bear season doesn't appear primed for high octane market action. We've probably seen three digit point(NSE20) losses in two or three instances in the current bear period; when Imperial bank collapsed and the current interest cap aftermath. With sub 3000 just around the corner, to call for the bottom is premature.
I am reading a lot of fear in investors but panic is yet to manifest. As long as you didn't put your lunch money in the stock market you should hold up well but varying risk appetite levels dictates most will lose their shirts.
The main purpose of the stock market is to make fools of as many people as possible.