DONT loose Hope in fear of Rupee depreciation

Strength in dollor giving sleepless nights to emerging markets and for investment community this is not a new phenomenon.
Even in 2013 we have seen ruppee depreciation.
Increased trade deficit
Increased interest rate in USA
Reduced export
Increased import thanks to crude prices rise and drought
Fear of Poltical instability
All these factors contributing to ruppee depreciation.


Economies and markets cycle up and down.
Whichever direction they’re
going at the moment,
most people come to believe that they’ll goΒ that way
This thinking is a source of great danger since it poisons the market ,
sends valuations to extremes, and ignites bubbles and panics that
most investors find hard to resist.
Likewise, the psychology of the investing herd moves in a regular,
pendulum- like patternβ€”
from optimism to pessimism;
from credulousness
to skepticism;
from fear of missing opportunity to fear of losing money
and thus from eagerness to buy to urgency to sell

But as an investor this kind of economic situation always prevails.
EACH year you have seen something big danger for investors being broadcasted over business channel but still many people made money, even some of you have made.
In such situations what to do
Investors can invest in export oriented companies
Investors can invest in sectors which growth depend on domestic market
Like consumption, Nbfc, infrastructure and its ancillary sector.
The swing of the pendu-
lum causes the herd to buy at high prices and sell at low prices.
Thus, being
part of the herd is a formula for disaster, whereas contrarianism at the
extremes will help to avert losses and lead eventually to success.


Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.