As the investment ground breaks into a financial earthquake around us, the one question retail investors are asking is: what should I do now? Should I sell and run or is this an opportunity to buy? The short answer: long term investors need not panic, short term investors need not buy. With a bankruptcy (Lehman Brothers), a takeover (Merrill Lynch) and an unfolding (AIG) at the global level sending stocks across the world crashing, could it be different for India? "There is no uncertainty regarding Lehman and Merrill Lynch now," said Sudip Bandyopadhyay, chief executive officer, Reliance Money.
"But if uncertainty around AIG is not resolved then there might be more problems in the short term." Rajiv Anand, chief investment officer, IDFC Mutual Fund echoes this short term sentiment.
"Markets are going to be difficult for sometime as we see large entities in America unfolding, which in-turn will induce investors to get more risk averse." With this sort of 800-plus point intra-day volatility becoming a once-a-month phenomenon, the short term risk around equities has multiplied.
And so have opportunities for those willing and able to hold on to investments for two years or more. "There are a number of blue chip companies that are currently available at their book values or break up value and thus it calls for a good entry for the long term," said Bandyopadhyay.
At a market valuation level, the Sensex is currently trading at a price to earnings multiple of 16.8 and a whole lot of stocks are available at low valuations. This is close to its June 2006 level.
The strategy for investors should be to enter with caution and focus on blue chip stocks with large market capitalisations. "Investors should look to enter quality stocks in a disciplined manner with an investment horizon of at least two to three years," said Anand.
"With that horizon, one can expect good returns." Investors might get tempted to enter smaller stocks.
"But at a time when big blue chip companies are available at attractive valuation there is no point picking up mid caps," said Hitesh Agarwal, head of research, Angel Broking.
Thursday, September 18, 2008
What should investors do now? - Suggestions
Tips On How To Select A Gift For A Girl
One of the most daunting tasks for males is when they have to select a gift for a girl. Sometimes, there are so many options that the person is spoilt for choice as to the what type of gift they can select. This article explores several ways on how you find the best way to select an ideal gift for your girl friend or a female friend.
One of the best ways to select a gift for your girl is to seek the advise of your female friends. This is usually the most common and most popular method that many people use. Often the advise of other female friends can help you make a good informed decision. Moreover, it is always best to have a female perspective when buying a gift for a female. For example, when buying something to do with jewellery it is always best to seek the advise of a female who can recommend best fashion items.
Another way to select a best gift is to use the Internet and look for review websites. For example, if you are aware of a certain perfume that you wish to buy for someone then you can do a bit of research on the perfume and see what other people are saying about the product. If it is worth buying you can buy it but if you feel there are a lot of negative perceptions on the product then you can reconsider your decision.
Finally, the best way to select a gift for a female friend is to talk to her yourself. Pick up small hints. Ask her what's her favourite brand and what she likes to wear to special occasions. This can greatly reduce the risk of her not liking your gift if you can seek her own opinion.
For an excellent detailed guide on how you can impress a girl go to
Tips On How To Get A Girl give you her number in just 10 minutes
Many guys who want to get to know a girl often find it hard to get her cell phone number if they lack confidence. There are in fact several ways that you can use to have a girl give you her number in just 10 minutes. This article will explore three 3 different ways of having a girl give you her number in a short space of time without you having to beg.
One of the best ways of having a girl give you her number is make an excuse up. For example, you can say something like I” am going to be going away soon and would love to catch up with you again, is it alright if I can give you a call”? This is inviting the girl to say yes because it is a closed question and most likely she would say yes if you use the correct tone of voice and language. Make sure you are smiling and give her eye contact. Avoid looking away as girls can sometimes feel insecure about things like this.
Secondly, one of the best ways to get a girls number is to just directly ask her if you can have her number. Many girls would question you or might hesitate so this is where you have to play it cool and act as though she will not able to speak to you if she does not give her number. Make it out as though you are really busy with work and you are going to make time for her. Girls like a guy who plays “hard to get”.
And finally, the best way to get a girls number is to ask her to “miss call you” as you want to show her your latest ringtone song that you like. This will bring a bit of humor to this but it would not be a problem provided you get her trust.
For an excellent guide on how to get a girls number and how to win her heart go to
First Tips To Talk To A Girl On The Phone
One of the main fears many guys have is how to talk to a girl on the phone without being nervous. There are several ways to do this without being nervous and generally if you follow these tips correctly you will not have any trouble when talking to any female or girl on the phone. This article explores several tips you can use when talking to a girl on the phone.
If you are going to talk to a girl for the first time make sure you are confident. The introduction part is always important so make sure you either introduce yourself again if you have not done so or ask her how she is. If you ask a girl how she is it makes her feel much confident and gives her an opportunity to answer your question without hesitating. Once you have introduced yourself and asked her basic questions you should consider asking her what she does and whether she enjoys what she is doing. Always be sympathetic towards her. For example, if she says something like “I'm really tired and stressed because of work” make sure you can offer her some form of support by saying “Don't worry, I hope everything works out”.
Another way to talk to a girl on the phone is to make her laugh. Girls love a guy who makes them laugh. This is because it makes them feel comfortable and gives them a chance to feel comfortable in talking to you. If you have had a bad tiring day then usually the girl can pick this up and she get the impression she is “boring you”. So make sure you feel confident and your attention span is 100% focused on her. Moreover, if you give her attention she is most likely to return the favour.
Finally, the best way to talk to a girl on the phone is to ask her lots of open questions. For example, asking her questions such as “what are your plans for the weekend” or “are you seeing someone right now?” will help the conversation flow smoothly. Make sure you answer her questions truthfully and avoid lying to her as girls can easily pick this up.
For an excellent guide on how to talk to girls you can go to
Wednesday, September 17, 2008
Two IIM-C Lehman Brothers
Two IIM-C students of the Class of 2009, who had interned with Lehman Brothers in summer, got their pre-placement offers just 15-20 days ago. "We interned at the London office. Work was as usual... no one had any idea that trade was declining," said one of the interns.
Investment bankers including Merrill Lynch and the now-collapsed Lehman Brothers have been big recruiters on the IIM-C campus. For example, last year, 34% of a batch of 291 got jobs in the investment banking and financial services sector.
Even for summer placements, last year, firms such as Merrill Lynch hired 18 students, Morgan Stanley (11), JP Morgan Chase (13) and HSBC Global Investment Banking Division (6). "Both Merrill Lynch and Lehman Brothers are two big players as far as placements are concerned," admitted IIM-C chief administrative officer Dinesh Varma. "They are good paymasters too. Probably, this year we will miss them. There's bound to be some impact but nothing that we cannot overcome," he added.
For the interns, there has been no official communication yet, but they know they will have to put in their names for the permanent placement programme in March next year. "We put in 12-13 hours a day at the London office and worked on hot sectors like commodities and equity sales. Everyone there was very interested in India," the intern recalled.
Last year, salaries for international jobs crossed the Rs 1 crore mark and the highest domestic salary, including bonuses, was in the range of Rs 65-70 lakh per annum, offered by a leading international investment bank. "There were a total of 32 offers made to students by Slot Zero Investment banks," said Rahul Ajmani, placement coordinator at IIM-C. Some of the top notch firms which hired students from the batch of 2008 include Goldman Sachs, Merrill Lynch, Morgan Stanley, Barclays Capital, Lehman Brothers, UBS, JP Morgan Chase and ING amongst others.
-By Sudipta Datta
Nikkei increases 2.1% on relief over Fed's AIG Rescue
TOKYO: The Nikkei share average rose 2.1 percent on Wednesday, rebounding from a steep fall the previous day as investors took heart from the news that troubled U.S. insurer American International Group would avoid the same fate as Lehman Brothers.
Financial shares such as top lender Mitsubishi UFJ Financial Group rose on easing concern about AIG. The U.S. Federal Reserve said it would provide an $85 billion bridge loan to AIG and take nearly 80 percent in the company in a dramatic about-face as victims of the financial crisis kept piling up.
The benchmark Nikkei average ended the morning up 241.06 points at 11,850.78. The broader Topix gained 1.3 percent to 1,131.97.
