Tuesday, May 29, 2007

Markets are hitting all time highs – do you plan to invest?

The world stock markets are all hitting new highs this week. With the inflation worry eliminated and due to lack of negative concerns, the benchmark indices all over the world are hitting new highs. Are you in the game? Or do you want to be?

The year 2007 started with fresh buying conviction and all the markets were hitting new highs at that time. The starting of February has witnessed a downtrend which ended in the last week of March. The reason the recent crash was the concerns about Yen Carry trade in Japan and the sub prime mortgage lending problems in US.

Now these negative concerns have drifted away with the start of April and the markets slowly recovered after a lot of volatile fluctuations. Now in May the benchmark indices are hitting all time highs again. Is it better to invest now? Have you already done that?

If you have already done that then it is fine. If you want to invest now, then plan for a future crash also. Because if the times turn against you, you cannot retrace your money back without losses and additional expenses. The best way to deal with this situation is to enter with certain amount as there are no negative concerns. Then wait for a short time for the markets to get corrected. Don’t wait for a larger correction as the larger correction is already over. Then average with the new entry. This is the time tested method to deal with the market which has already risen to new highs.

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