Tuesday, December 16, 2008

All the way to 2018?

Today's Financial Express had a nice article on what an investor can expect from equity markets over the next decade. The article concluded with the following lines:

The bottom line is the bulk of equity price declines are behind us, but the equity market is unlikely to recover quickly as a whole. Returns will come from stock picking not market timing or asset allocation decisions. But be aware that while in the past markets were overly optimistic, ignoring any bad news, we are currently in a position where markets are pessimistic and they appear to be ignoring an important bit of good news from the oil markets. So study your stocks now and creep back in, very, very slowly. Add to positions, no faster than 5% per week. The best traders are good averagers.

I concur with the author of this article and am of a firm belief that markets hereon will indeed be a stock pickers heaven given that a large part of price destruction is already done with, nevertheless, on the whole I am not as bearish.

The entire article can be read here [link]

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