The Indian Economy Blog

September 26, 2005

Slow And Steady In The Stock Market

Filed under: Capital markets — Amit Varma @ 8:40 am

Devangshu Dutta writes in DNA:

In the Melbourne Test of 1907-08, the English last wicket pair of Sydney Barnes and Arthur Fielder needed to get 39 runs,while the Aussies, of course, needed one wicket. Most tailenders would have tried to hit the runs off and probably got out. After a mid-pitch conference, these two decided to ‘get singles’. They held their nerves and inched to a one-wicket win, batting through an excruciating hour.

Although less spectacular, slow and steady methods can be even more effective than big hitting. Investors need to remember this at a moment when the Sensex is gaining more than 500 points a week and then losing 260-odd points in a single session.

Here’s some perspective. The market lost about 4% last week — that’s a tiny correction compared with that in March-April 2005, when the market dropped over 13%. But a huge single-session drop makes much more of a psychological impact just as a sixer is more memorable than six consecutive singles in an innings.

Dutta predicts that in the next few weeks, “[b]ears will wander from sector to sector selling and, as they lose interest in a given counter or a given sector, covering and moving on, value investors will get in.” Read the full piece.

4 Comments »

  1. A good comparison! But is there no comparison in recent history for such show of grit? Why did u choose something that happened a century ago?

    I take an RSS feed from ur site. It would be helpful for people like me who regularly read several blogs if you gave a full feed so that we can read all the posts at our convenience…. Currently your blog gives only a part feed

    Comment by Dr. Prahalathan KK — September 27, 2005 @ 9:09 am

  2. Can you tell us more about RSS feed and how it is taken and whats the benefit of taking it.

    Regards

    Bharat

    Comment by Bharat Agarwalla — January 26, 2006 @ 6:20 am

  3. [...] The Indian Economy Blog Slow And Steady In The Stock MarketSlow And Steady In The Stock Market September 26th, 2005 by Amit Varma [...]

    Pingback by India Stocks Blog » Stock Paisa, Indian Stock Market, IPO Allotment Status, New IPO, Stock — September 1, 2006 @ 10:05 pm

  4. China’s August inflation falls short of forecast
    HONG depression (MarketWatch) — China’s consumer depression index rose 1.3% in August compared to a year earlier, according to data released Monday by the National Bureau of Statistics.

    Comment by depression — September 11, 2006 @ 11:40 am

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