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|26th November 2008, 17:56||#1|
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What's the biggest lesson the Economic slowdown has taught you?
The recent economic slowdown and market crash has on one hand given a lot of heartburn, but at the same time, looking at the brigher side, has taught a lot of us some lessons.
For me personally, the biggest lesson was to never invest in Stock markets on blind faith, based on tips and suggestions shown on Media. Everyone was expecting Sensex to cross 30k levels this years, be it TV, financial mags, brokerage houses, and what not. No one predicted this carnage. Somewhere in my mind, i knew it had to happen. The prime indicator for me of the bubble was the ridiculous Real estate market. 1500 Sqft houses being sold for 1 Crore and that too 20 miles away from the city. Same goes with exponentially rising stock prices and loan interest rates.
I have also learned that its wise to save for the rainy day. And to avoid taking loans as far as possible, except for Home loans (provided the market is reasonable and low interest rates, otherwise its wiser to live on rent!).
What is your biggest lesson from the current downturn?
Last edited by DCEite : 26th November 2008 at 18:03.
|26th November 2008, 18:06||#2|
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My Learning: When you local panwalla knows how much the sensex has risen/fallen on that day, its time to sell your shares!!
|26th November 2008, 18:25||#4|
Join Date: Feb 2004
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"Buy Low, Sell High" Just kidding. What the recent economic turmoil has reinforced in me:
1. Save : I was always a savings-centric personality, but this has made me increase the % of my income that's saved.
2. Research & Invest : Again, I used to buy in stock only based on fundamentals, and for the long-term. Reinforced.
3. Loans / Finance : I am allergic to loans. I hate loans & credit cards. Excepting when they are cheaper than the returns you get on FDs (as is right now for some!!). Profit...Muaaaah!
|26th November 2008, 18:26||#5|
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Always go where no is busy doing it. Let it be the realestate or stocks
Irrespective of what you earn, try to save 25% of your earnings in any form.
This economic slow down has taught me nothing, but reinforced the frugal ways of living.
Last edited by Surprise : 26th November 2008 at 18:27.
|26th November 2008, 18:30||#8|
Join Date: Nov 2006
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This has taught me to sell off the stock when I feel that the market is overheated (and not to listen to anyone).
Thankfully I didn't invest in real estate in super heated markets (was very well aware that they were 'superheated').
It is definitely a good time to invest in stocks now if one is willing to wait for a year or two.
|26th November 2008, 18:45||#9|
Join Date: Nov 2004
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Always trust the Indian economy to be resilient to International (NYSE/American) shocks,
The RBI & SEBI have a far tighter regulatory regime than we can imagine, btw SEBI works round the clock to preserve control and regulate the stock exchanges.
The builder lobby exists in Mumbai :lol
I have never leveraged my resources, never gone to take loans on shares to reinvest in shares, i dont believe in getting margin calls either.
Simple and sweet hard work and planning saves the day.
|26th November 2008, 19:30||#12|
Join Date: Aug 2007
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Friends, let this not be another Stock market bashing thread .
Stock market is just a part of economy and, as they say, is a barometer(?) of economy. This slowdown has affected all of us and also those who have nothing to do with Stock markets.
Now, coming on topic, I always believed in diversifying and this slowdown has reinforced that belief. Accordingly, I have investments in housing, gold, long-term ULIP insurance and ELSS (tax saving purpose) and last but not the least some cash in bank.
But one thing I learned from this downturn is never ask your wife to quit her job if she is working (I did, fortunately my wifey refused)
|26th November 2008, 19:43||#13|
Join Date: Feb 2006
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Priority is clearly to finish my home loan & invest all excess cash in FD's. Life is gonna be subtle from now on for sure. This is a rude awakening for a lot of people.
Now that many have realised the essence of saving, I truly hope the market begins to revive. The uncertainty is just too much to bear on a daily basis.
SAVE SAVE SAVE is my mantra from now on
Last edited by mb_jg : 26th November 2008 at 19:47.
|26th November 2008, 19:43||#14|
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One thing it has showed me is nothing can be taken for granted. What ison Top will eventually come down. The catch lies if you can save yourself before the down comes. Savings,well i think everyone tries to save as much as they can in all kind of economies so nothing changed there. But yes i have stopped spending on luxuries and more focus is on neccessaties now!
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