Wait! Aren’t we supposed to see a pause in rally and witness some correction given that valuations have started looking expensive? This million-dollar question must have surely crossed your mind. If you are one of those investors who have been thinking along similar lines, then we believe you are making one of the most fundamental mistakes of trying to time the market. In other words, you are hoping that markets would fall and you would then invest your hard earned money so that when the market regains its northbound journey, you will profit along the way. If it was this simple, everybody ought to be rich and people wouldn’t have lost their shirts trying to play the market. History suggests that no successful investor has ever made substantial returns by trying to predict the timings of the fall and rise in stock markets.
Now that you have got your basics right, let us try and find answers to the relevant questions at hand.
Click here for the full article.
If the business does well, the stock eventually follows. – Warren Buffett