Some analysts, backing DLF, have felt that the sharp fall in this stock in recent times, in line with others in the sector and the market, was unjustified. Realty shares have, of late, fallen on concerns of slowdown in demand for property, which has led to softening of prices in several pockets of the country.
DLF shares have more than halved from its highs in mid-January, while the BSE’s Realty Index has fallen 47% in the period. Analysts tracking the company said DLF should not have been clubbed with the rest in the sector, given its better focus on commercial assets compared to several of its peers and diversification in its revenue portfolio.
They say commercial properties will be more resilient to fall in prices than residential. But, pessimists argue that a slowdown in information technology and related sectors, led by a US recession, ensures that even commercial properties are not totally insulated from drop in prices.
They estimate that these sectors, till recently, contributed 50-60% of the key office properties in the country. It is said that such uncertainty has resulted in the company delaying its plans to list DLF Office Trust, a real estate investment trust(REIT), on the Singapore REITs market.
MUMBAI: Crude Oil prices have been going up and up all these months. Do you remember that six years back in 2002, the oil price was $20 a barrel? Now that oil price has gone past $100, how far can it go?
According to Keith Fitz-Gerald, Investment Director of Money Morning/The Money Map Report, crude oil would trade as high as $187 a barrel in the next three years.
Back in early 2002, when oil was trading at less than $20 a barrel, Fitz-Gerald had predicted that oil prices would reach $100 a barrel within 10 years.
Now again, the seasoned analyst writes:
"Late last year, when oil was trading in the range of $90 a barrel, I first publicly predicted that crude would trade as high as $187 a barrel in the next three years . In the middle of March, just days after I reiterated that prediction and provided some potential related investment opportunities in an edition of Money Morning , Wall Street giant Goldman Sachs Group Inc. ( GS ) issued a report predicting crude oil prices would reach $175 in the next few years.
Real pricing changes and the altered behavior that flows out of such stressful stretches can only take place when prices are high and when shortages become apparent. Without the benefit of all the information uncovered by such a volatile environment, forecasting can be a fool's game.
As I've demonstrated, whenever I've made price projections, I've always made sure to factor in as many variables as possible. But it's clear to me that the Energy Department did not do the same.
Therefore, as much as we'd love to believe that gasoline prices will stop their incredible ascent at $3.60 a gallon this spring, we can't. Not only does the government's price point seem to be little more than another guess in a long line of baseless predictions, it's even contradicted by the saga that's unfolding on the global economic stage.
Absent the introduction of proven alternatives to gasoline, we're entering an era in which a pump price of $3.60 a gallon is going to be looked back on as a bargain.
And while it's going to be a painful period, investors who view this as an opportunity may well find ways to take the sting out of escalating energy prices."
Here are seven simple ways to survive a stock market correction as an investor : -
1. Stop Listening To Analysts
Most analysts in the media instead of providing you with a solution will just confuse you. Somebody will say everything is doomed while others will say things are great in the long term. Forget listening to analysts- most of them won’t be of any help. The reason people listen to analysts is because they are looking for peace and hope. Trust me you will get none of that by listening to somebody else. Peace and hope are all within you.
2. Stop Staring At Your Portfolio Every Thirty Minutes
Another mistake people make is that they get up every morning and wait for the markets to open. Once markets open they start staring at their stock prices. A fall makes you feel worse and small rise makes you feel a little better. This won’t help either. Instead keep track of the fundamentals of your company every time the results are out. If your company is profitable and growing - be happy. If it isn’t, find out if you need to exit. The stock price will catch up in the near future if business is growing. Do you stare at your money kept in a bank FD everyday? Most probably not. Use the same principle when you invest in stocks or mutual funds.
3. Be Patient
Many of you might not have a lot of cash to buy cheap now; however please be patient with whatever you have bought. Even the youngest billionaire on Earth today is 23 years old. It took him 23 years to be a billionaire and he didn’t do it in few days or weeks. The youngest billionaire probably in history is 23-year-old Mark Zuckerberg - the founder of the social networking site-Facebook.
4. Speak To Actual Investors With Experience
Instead of interacting with analysts or your broker, speak with people who are actual investors and who have been in the market for longer periods of time than you. They will tell you how they have survived various stock market corrections and what has made them richer. Read and learn more about people who have actually created wealth and sustained it over a long period of time
5. Stop Following Crazy Tips
Please for heaven’s sake stop following ‘hot’ tips which promise to make you a millionaire in a matter of months. Maybe the ‘hot’ tip is only meant for billionaires who would end up as millionaires in case they do follow the tip. If it seems to good to be true, it is probably just a scam, which hopes to take money away from retail investors and put them in the hands of greedy manipulators. Similarly stop following rumours about how fundamentally strong companies are going to be shut down and go bankrupt in the next few months. Use your own head and trust yourself.
6. Understand Market Cycles
Every asset class has a cycle. Stock markets, mutual funds, real estate all move in cycles. Please realize that nothing can keep going up forever in a single direction. There will be phases when prices will come down and again move up. If you go back into history you will see several instances when stock prices came down, however over a period of time quality companies always reward investors. Understand market cycles, and don’t become a slave to them.
7. Follow The Guru
Today the richest man on earth, Warren Buffett, is an investor who has created wealth because he has stayed away from what everybody else is doing and has simply invested in quality companies for the long term. He invested in Gillette, for the simple reason that he believed that men won’t stop shaving. It makes sense to follow, as I call him, “The Guru” and think long term and remember people who create wealth do things that others don’t.
I’m sure if you follow the simple techniques above you will be a much happier and a calmer investor. Investing is about controlling your emotions and being disciplined about what you do.
