The Indices At All Time High- The Reality And Falsehood

The markets are at all time high.The anchors on business channels are having the right time of their life. They keep on predicting new highs and there’s a feel great factor as if everyone is earning money in this uptrend. The material stay true still. The returns shown on NIFTY ETF ( thereby meaning on NIFTY) are correct.

Now what’s wrong? This is what all investors got to know. NIFTY will keep on changing.Portfolio of an investors should be churned also. NIFTY kicks out the stocks which do not perform well.Most investors don’t get from the stocks which are not doing well. Markets are in all time high but you are sitting down on a stock portfolio that is not heading anywhere. When professionals talk of markets generally, they talk of Index.

In January 2008, NIFTY acquired lost 1001.15 factors ( 16.31%) from the December 31, 2007 close. It was the start of 2008 crash. We shut at 10085.on September 15 40,2017.In more than 9 years, the NIFTY has not yet doubled. Dawn has just showed up Yet all the experts are performing merry tunes as though new.

Let us offer in facts and not the idle talk. We aren’t making wrong assessment. We are comparing the highs of 2008 with the present near fine time high. With this all time high Even, the returns are not good. Many strategies like Bank Deposits, PPF, National Savings Certificates would have given better earnings and with a guarantee.

  • ► May 2010 (1)
  • 402 News Corporation (NYSE:NWS.A) -69.8% 6.18 20.49
  • Ships and vessels investment growth is expected to decline
  • 209 Embarq Corporation (NYSE:EQ) -43.5% 27.99 49.53
  • “Accept it”

But not everyone can time the marketplaces. And with long term investments, we are intended not to get worried about the timing. Please know that the rosy numbers can be deceptive. NIFTY can be an Index comprising of 50 stocks with weights assigned predicated on their market capitalization. From the above list, RCOM, BHEL and SAIL aren’t even among the 50 NIFTY stocks.

These have been weeded out within the Index Management. TCS and Infosys were at 2.89 and 2.88 respectively. The celebrities of 2008 specifically ONGC, NTPC and BHARTI are languishing at 1.18%, 1.11% and 1.5% respectively. Others like RCOM, BHEL and SAIL do not find a accepted put in place the index now.

What is this is of all this? We are getting lost in the statistics, charts, graphs, sound and hoopla created by professionals on business stations. We are not comparing apples to apples.Not apples to mangoes even.Probably, it is like comparing apples to potatoes if we look at the likes of Reliance Communications, SAIL and BHEL.

If you were invested in the very best 10 NIFTY shares in 2008, probably result would be a loss in 2017 and not doubling of your money as recommended by doubling of Index. Reliance Communication exchanged at Rs. BHEL exchanged for Rs. I am not being selective in directing out the negatives. Leave the negative stories apart. Even a combination of good ones and the Index Management has yielded significantly less than 100% returns in more than 9 years. One should learn from reality rather than from the press noise.