STOCK MARKET as an investment option in 2009: few precautions..

As I have mentioned earlier, many equity analyst of major fund houses projects that 2009 could be a year of opportunity. Accordingly as per our common intelligence it is not much tough to presume that there must be a turn around in trading market sooner or later. Hence if we invest as per recent tem we can expect a higher return in future but there are three major considerations in this aspect.:

Firstly, most of the optimists projects that opportunity can be open up in the latter half of the year as all of them are yet to conclude whether the worst part is over. Hence none can rest assure that the global stock market can’t go down further. In this context, the ideal level of entering is still to be estimated. Hence, people are more reluctant to return back in fear of further loss.

Secondly, if we presume that nothing much left out of worried factor & there will be a hint of gradual growth from the later half still it is tough to predict what will be the exact turn around time for market to back in tract.

Thirdly, in course of economic turbulence events like amalgamations, mergers, absorptions & winding up among many major companies is quite obvious as most of these companies rests in balance sheet manipulations at least to an extent. Although the entire scenario can be a bit prominent to predict once their first quarter result is declared. Henceforth, which sector will lead the race or more precisely what are the stocks under which sector will be a good bet is troublesome to project at present point of time.