Prajna Capital - An Investment Guide

The term bottom fishing is generally applied to the practice of buying what you think is an undervalued stock, especially in a period when the markets are bearish. The logic behind bottom fishing is that the prices of stocks sometimes fall much below their actual value in a dismal market situation which makes them attractive. Investors purchase these stocks at cheap rates with the expectation that when the markets improve, the stocks will bounce back and become a profit-making investment. Bottom fishing is, however, fraught with risk as the markets could always move contrary to expectations. There are two crucial aspects determining the profitability of bottom fishing — Price Time Price - With regard to price, it is largely felt that the market has bottomed out and you may currently get stocks at the cheapest rates. Time - However, there is no guarantee as to when the markets will move up or dip further. So if you’re looking at making quick profits in the near future, bottom fishing ...

The market has fallen, leading investors to think of safer havens to invest. But here’s why you may still bet on the equity market. Here we bring some of the strategies. WONDERING whether to stay put in your stocks that may have been hit in the recent market crash or to liquidate and shift investments in other asset classes. Here are 10 reasons why it still makes sense to remain invested. Markets have come down from their recent highs in the past few weeks. While some of us might be thinking of cutting losses and putting money in safer havens, there are more than one reason still favoring the equity markets. Let’s check them out: a) Long-term plan, lest we forget: The basic principle that often gets buried in a bull market situation is that one should make investments with a long-term perspective. Any serious investor should remain invested in stocks, no matter what the current market situation is, for a couple of years but if the idea is to make quick bucks, probably he should sell an...