Market Correction

Election time, how do you think it would be related to market ups and down?
Being a new investor this never did hit my mind that elections can also have an impact on market.
This phase is called “Market Correction” as many of my friends in stock market use.
There is a great impact of election on market which is in 2 phase. Just like election which starts with voting , there is a pre election phase in market wherein you would see a rise in market. There is also a post election phase where in you could see a change in market which depends on the stability of the government.
If you would have analysed the market now its has been rising, which started just before the election and would carry on till the date of counting. During election readers of newspaper goes up and so does the news chaneel. Sales of alcoholic beverages go up during election, with increse in money supply in market, people care product also gets benefited. Auto sales also rise up with use of SUVs during election campaigns, all these things directly affect the market. Post election there had been always a rise in market which is expectation on ploicy initiative. To be precise 16th May to 18th may would be the time when there would be a fall in market which is the correction time for market.
At the end let me provide you with some data that would provide some support to my blog:
· For the last eight elections from 1980 onwards sensex on an average showed 4% gain in the three months preceding elections. Barring the May 2004 elections, sensex has, in fact, gained more than 5% in the three months preceding the elections the last five times since 1980.
· The benchmark index was up 13.5% before the October 1999 polls, 5.1% before the March 1998 polls, 5.9% in 1996 and 8.1% in 1991.
· In 2004 (after five years of the NDA government) and 1980 (following the Janata Party's short-lived rule), sensex recorded less than 1% returns in the three-month period before the polls, but mind you, it still made gains.
· In 2009 index has already risen upto 5%.

Investment

Investment the golden word that comes into mind of every youngster as soon as they turn out to be a proffessional.
Investment is a method of purchasing assets to gain profit , this dosent mean that you invest for a sort period and dream about becoming a billionare in an year.
Investment is not as easy as many of we think, it takes years to understand the art of investment. People have spend a large part of their life planning their investment and learning about it.
There are certain things that one should keep in mind before thinking to invest in market.
As it is said investment is a process to grow your money and shield yourself against rising inflation.
The sooner you invest the more time you have to grow your assets. The concepet of compounding interest which we used to learn in our school comes into picture. The dividends starts accumulating together with your income, as an end result you see growth in your wealth.
The reserach and history of the unpredictable market have 3 golden rules to investment:
1. Invest early
2. Invest regularly
3. Invest for long term

Trade Union.....No More A Distant Reality

I don’t know, How many of you have felt the heat of the slowdown in your working environment or ambience. But the reality is that it is changing gradually and eventually becoming harsh every moment going by. Now I wonder, can this event coin the term “Labour Union” in White Collar and extremely sophisticated industries like IT industry too. Let me just cite you an example, in my organization half yearly appraisals are in process and the situation is like this for even things as small as accessing internet, an employee is threatened to be terminated. Is this not the extreme? Is it not the situation which corporate houses are cashing in? I think it is. Every single employee can be considered as the building block of the Service Sector industry like IT industry, so he should get his due bite. “Termination” and “Sacking” have become the major contents of the grapevine these days. Labour Union may seem to be a distant reality right now but take my words if this situation persist then it has to break out this way only. Is there anything wrong in it? Look when you toil yourself all day long for your organization just to hear that you can be terminated any moment sounds morally wrong and here comes a group or union consisting of assets within who should fight for their share. So guys pull up your socks, we are ready to bear the heat in the form of no increments, no promotions but we cannot work under threatened conditions. We are the One who transformed the way they do business, we are the one make them global, we are the one that is why they exists. So why should we always be at the receiving end. I think this is the testing time and time for some introspection.........