With the market swinging between unbridled optimism and violent corrections, investors need to take stock of their risk appetite.
Stock market investors are a confused lot. They undergo bouts of wild joy when they see the stock market scale greater heights pushing up the value of their investments. For the past three years, the stock market has risen about 300 per cent with intermittent corrections.
At every stage, investors have been worried on how far the rally would go further, and every correction has caused enough worries. The 922 point volatility in the Sensex in the past four trading sessions has jittered investors once again.
So what should an investor do: stay invested, invest more or sell? Are the Indian stock markets over-valued? Is there any upside left? Can the phenomenal rise in the stock market over the last three years sustain? Have all the good things come to an end? These are the questions that cloud the mind of every investor.Click here for the complete article.