Our memories tend to be too short and our greed too much

Date: January 22, 2008

Its my B'day today, Do you wanna say me "Hey Nirnay, Happy b'day".... better you should remove "Happy" out of it. Why?? Indian stock market has lost almost 20 lakh crore rupees (20,00,000,00,00,000.00).

The drastic fall in the value of Indian shares took everything from us and/or from our near and dears. Some of us will go down under and never be able to get back to the market again but most will survive. The pain will linger for many months, maybe years. Every such debacle has lessons for us and the sooner we forget them the more we suffer. My parents had never invested in Indian shares, they said it was unsafe. But I thought, after everything I heard on TV and in the news, that this was the right place to put my money. Now I'm not so sure.

As per my knowledge my maximum Orkut friends to whom I am sending this mail are s/w engineers or attached to some kind of IT firms. The normal saving after tax and expenses are not more then 20k-30k per month, and we keep investing our life savings in these markets, hoping to make a pretty profit, and the result..... God is punishing us for our arrogance.

People should ask themselves why stocks like RNRL, Ispat and RPL have lost 50-70% of their value. It is simply because their stock prices had snapped all connection with underlying business fundamentals, earnings and value. 1. So next time you invest do proper fundamental analysis.2. Futures are time bombs in the hands of inexpert and inexperienced traders, so keep yourself away from Future.3. Keep away from your friendly stockbrokers, who are damn metric pass or BA/BCom. Don't call them, instead do your analysis.
"OR"
Feel happy to put money in a bank FD and then wait for one full year to collect that measly 8%, then the stock market which give you 20% every month and but returns one day with sins and washed away your blood. Do remember 21-22 January 2008, as history will repeat itself again in the future.

Offfff, our memories tend to be too short and our greed too much.

-Nirnay