Equity is the best investment option for now

It has been quite a long time since i have posted an entry in my blog. I hope you all know the reason by now. The stock markets have tumbled and witnessed the full bear potential.

I was quite busy working on my portfolio of my mutual funds and stocks. But, believe me, there are some great learnings from this biggest stock market crash ever reported in history. Be it the economic conditions, terrorist attacks or the US economic slowdown and whatever that might be the reason, 2008 has offered a lot of learning to all of us across the globe. These are some of the basic lessons that should have been followed and learnt ever since this crash happened.

Remember, the saying, "whatever goes up will come down....", this is exactly what happened with the stock markets. There are many people i know, who have lost substantial wealth in a matter of few months or even days. So should we all be distant to the stock markets??? Definitely not !

In fact current market conditions has a lot to offer. There are tremendous opportunities for wealth creation. But the clause here is, only for those who are patient and with a long term view. I still believe, equity is the best asset class for wealth generation over long term period. One should remember that you should not shy away from equity when markets fall. In fact, it should be the other way round. You have less chances of losing when markets have already fallen.

To be more clear, the chances of losing money are very high when market is at 20K than when the markets are at 8K. Currently the valuations appear so attractive that whoever invests now in equity, is almost sure to generate wealth over period of time. Equity remains the best asset class. It has offered more returns, if you invest when markets fall. This is just not an advice but is based on the facts written upon analysing sensex over a period of time. This is quite logical, as the chances of the market going high are fairly high when the market is low. The same way, the chances of market going down are high when it is at a high.

So invest now... there is no other good time to invest. You miss this opportunity...you miss it for ever.