Are you following media without applying the mind?

Market may wobble owing to global issues. Swiss bank major Credit Suisse has predominantly occupied the media space now. It has been in financial problems right from 2008 and there’s nothing new in it. 

 

We all know how the German’s largest lender, Deutsche Bank, fought back nicely under the leadership of Paul Achleitner. In April, Deutsche announced its highest quarterly profit in almost a decade — €1.2 billion. Last decade the media had created panic among investors citing the woes of Deutsche bank. This decade may belong to Swiss bank. I am sure credit Suisse will also turn a corner in next 5-7 years or else it will be bailed out by the Swiss government. We don’t have to worry about it. 

 

There is nothing new in the media news. They use the powerful weapon  either to create panic or pump and dump silly stocks. Yet gullible investors believe media news to buy stocks like Vedanta, Adani group, yes bank to just name a few. 

It’s time investors wake up and buy high quality stocks with reasonable valuation to create wealth. You don’t have to be a Warren Buffett or Jhunjunwalla. All you need is a bit of patience and few quality stocks to make you rich. Unfortunately investors have myopic views and go in to F&O, day trading and swing trading for short term profits. Whenever you do short term trading remember that there are many smart traders in the bazaar who know how to legally take out money from your pockets. If a jackpot stock is announced through the media or social media it’s surely not meant for you- every other person knows the secret. The mistake investors make is that they assume they hold a secret stock.  Unfortunately they fail to realise that they are the last person to get the so called secret. 

 

Let’s discuss about how to build a good portfolio in our next face to face meeting to be held on 16th of this month. Stay safe till then.