Road Ahead For Stocks

In times like this when stock markets are becoming increasingly volatile, its prudent to check ones risk taking apetite before taking a plunge in the markets.

Gone were the days when investors bought shares based on fundamentals and Dividend Yield , these days the Growth commands significant premium as seen from P/E ratios of emerging markets like china, india.

This means investors are willing to take risk coupled with high growth.

So staying with companies that are witnessing high double digit growth should be the key even if short term turbulances are painful.

As long as world GDP continues to expand above 4%, investors need not worry about short term corrections in the stocks, after all stocks are correcting after a sharp upmove.

We must not forget that its the ultimate Greed thats drivig these asset prices to scary levels and this will not be going away soon as long as people have cheap borrowed money to spend, to invest.