Where can I invest as of now in Stock Market? Should I wait for Correction?

The market is making a new high every day, Everyone is happy with this, so sad as well. Those who could not participate in this bull run are sad. Because they are thinking, “ Why did they miss the opportunity to make such a high profit? And those who took the part were not so happy with the bull run of this market. They also did not know that the market would recover so soon, or else they would have invested a little more and wrapped more profit. Right now, keeping in view the boom in the market, new and old investors are thinking that there is still a chance? And a little more we wait should be done for a market correction. You will be happy to hear that there are still some companies and sectors in the market, where we can invest and earn good profits.

Are we in a bull or bear market ?

It is important to know before participating in this market that we are in a bull or bear market? Each market needs a different kind of investment style. And the question is, should we invest here, or wait for a market discount?  Now if we look at the question, then you can understand people are a little confused here.

Now there is a bull market, and also the market is at its lifetime high. The market was trading sideways for a few days, now a breakout has been given. Even this all is very optimistic about the market, that it will go up more from the current situation. 

How to invest in the bull market ?

In the current market, two types of investments can be made. One is a growth investment and the other is a value investment. To prove which of the two is correct can be a very good argument.  But it is not that which is right, but what is more important here.

By Growth investing :-

Anyone who is participating in the current market looking at which stock is going crazy, or which sector is getting a lot of momentum? Then one can participate in it and make good money. That’s why people are buying shares even after having very high valuations. Even they did not feel afraid away from buying an IPO of multiple time valuations. But what an experienced investor would never do. Still, these investors are earning a lot of money by participating in the source.  There is a proverb in Odia, “The son who brings the most money, he is the best son”. Despite going against the rules of the Market, Growth Investors are making good profit in this market. The best example, Rakesh Jhunjhunwala , who was against buying zomato IPO. But this company share price opened duble of its ipo offering price on the day of listing.

Value Investing :- 

To date value investing is the best style to invest in the stock market. It has outpaced Growth Investments a number of times.  But to invest with value investing investor has to think out of the box. When people are enjoying the boom of the market at that time away from the market and When people are running away from the market in fear,  At that time they put money in the market as a friend. It’s easy to hear, but it’s very difficult to practice. If you do not believe, then can you stay in this bull market without applying IPOs ? it needs a lot of discipline.

Value Investing teaches us to invest in whatever is available at a low price from its value. The best practice of this I learned from a book. The Dhandho Investor is an excellent book by Mohnish Pabrai. Where it is simply said that if you invest in the sector which is not performing now, then you will get the best stock at a low price. After this, if we will take it seriously, we can now invest in petroleum, textiles, PSU, stocks, these are all sectors that have not yet come into performance. and trading at a very low price as per valuation.  By investing in and you will wait till the sector runs, then you are better off from growth investment. And that too at low risk.

Should I invest now or wait for a correction ?

The market is in Life-Time High, For this reason, this question has become very important. But I want to ask a question to every investor. Are you buying a market or investing in the market? The answer to this question can only remove all your doubts. Yes, we are not buying the market, but we are investing in the market. So you look at Nifty and Sensex as a signal meter. Not the one thing like shares or commodities to buy. I have seen a lot of people that say that the market is too high, everyone should not be invested. And everyone makes this same mistake. Let’s understand this through some examples.

Focus on individual stocks, not indices:- 

In the 2020 market crash, despite the market being so low, there were many stocks that were very expensive. In this 2021 market has made a new lifetime high, but in this market, there are so many shares that are trading at very low value. So now this question has no meaning. If you are buying expensive stock in a low market or vis-a-vis you will never make money in stock market. So here is not market timing but your stock picking skills which will make you money in the market.

Conclusion :-

Whatever be the market, if you know how to pick a stock, then you can invest any time. How to Pick Stock in Any Market Condition You should read our blog about it. Here is the link: How to choose stocks for long-term investment in India ? I had suggested much stock to my friends and clients, Some people didn’t take me seriously, some people didn’t hold my recommended stocks. I believe that stock selection and buying undervalue are very important. But more important than that, it is necessary to maintain discipline.