Sensex @ MRP : Your shield against a crisis.

Over the years we found that Sensex has got a fair Valuation. Once it attains that valuation and starts moving upward it is time to sell and vice versa. Read this wonderful article here. This is backtested and works like a charm

 

Very few invest in Sensex or NIFTY or index fund of these. Yes it is great to have timings ,you can create huge wealth with right timings and all such articles reapear after every correction.But it is very difficult to follow. Market can remain irrational more than you think or individual stocks can take different direction irrespective of Sensex..What is explanation for those stocks which were at or near to 52 weak low ,when NIFTY or Sensex were all time high and those stocks which multiplies by five or six times,when Sensex was going up and down and is at same no after 4 or 5 year with no gain in sensex or nifty.Yes one has to be cautious at higher levels and at least avoid fresh buying at all time high levels of Sensex.But it is better to ride a long journey with qualty stocks during their growth life cycle irrespective of ups and downs.Compnies performance or growth prospectus are not necessarily tied with movement of sensex. So one should keep all type of possibilities including this to gain.Yes if some body wants to follow this there are many dynamic PE funds who keep on selling or buying with predetermined level of price earning,and remain invested fully at lower levels and goes to more cash or debt by reducing equity at higher level.