panch-tattva talk…scope of possibilities

Friends,

Since the time I psoted last under these columns today , the trding commenced in US markets and DOW lost 700 pts quickly. Would you believe it recovered all losses in the mean time and traversed to green territory for a while and is at par at the moment.

How is one to enter or exit the market in such a scenario. My humble suggestion is that one should be picking stocks with asset value in such times he has cash. He shouldn’t bother about the values still going down or up. If one does not have cash and does not require cash by selling his stock , he should nurse his portfolio by judging relative values of his held stocks and reshuffle by picking stocks of higher value and disposing stocks of lower value.It should be slow and gradual excercise and not in a rush. By value I simply mean the stock with higher book value and a track record of profit making for last three years. The PE ratio is not of all that importance. If you are following the advices here you would not have gone into aquiring any non-substantial stock in any case.

HariOm,
KrsnaKhandelwal