[9:34 AM, 11/26/2019] Jiten Patel: How the market do Discounting method......
Lately if you have noticed that Economic Indicators are really bad for India......GDP growth is going down and Businesses are doing hand to mouth business...... Ground scenario and reality is very bad.....there is hardly any Liquidity in the Economy.......no fate and the animal spirit is missing......lots of scams..... lately Karvy broking....... thousands of NPAs are still to be unearthed.....US/China trade deal getting Dragged......No Credit given by Banks......
But above all these factors why is Mr Market going up...... when there is so much uncertainty doubt confusion in this complex world around us currently......
Well the logic is all this News and Factors are discounted by Mr Market.....i mean who doesn't know THESE......The whole world knows about the current uncertainty and doubts......
So the Bad news which are already there in the Domain gets discounted by the Smart Investors and they know that at the end of the Dark Tunnel there is Light......
So they by in Anticipation that maybe in next year or so all this Bad news will evaporate and the flow of Good News will and have to Eventually start.....
So they are all Buying today and Discounting the fact that the future will be good for the economy..... businesses...... and companies.....
So the more bad news flowing (Recency/Representative Bias) the more the Retail Investors will stay away from the market and the more this Smart Investors will buy and take the Markets to Higher Highs....
Now the beauty of this is by the time Economy businesses starts taking a U Turn from bad to good.....Markets will be way up at Astronomical Heights because the smart Investors have been Buying continuously.....Once the Market reaches Astronomical Heights..... Economic News are Coming Superb...... Businesses are doing exceptional good..... Retail Investors will run to Markets to Invest their hard earned money in Anticipation of making money from the Market......
But they are dreaming and it is a Illusion...... because now the Smart Investors are waiting for them to Come and invest in the Market at Astronomical Heights and they will be the ones who will start Off Loading their STOCKS to so called Poor Investors who have come to make money in the market because of so many good news flowing every where......
But they don't have a slightest clue that such things were already anticipated by the Smart Investors who were Buying continuously during Bad News Flowing and waiting to Sell to the Poor Investors when the Good News start Flowing....
So currently if you notice that the News Flowing today are all bad news but still the Market is going up ......
[9:40 AM, 11/26/2019] Jiten Patel: As long as the Poor Investors don't Run to Invest in market and jump the queue to be the first one to invest and feel FOMO to make Easy Money......till that time Markets will keep on going up and up and up.....
But the UP Trend will not be Linear......it will be completely Random with many corrections on the way.....
[2:53 PM, 11/26/2019] Jiten Patel: What is the Stock Price made of and Price at different stages......
Stage 1). Price below Value of the Company
Stage 2). Price at Value of Company
Stage 3). Price incorporating Growth of Company and PE expansion in Price
Stage 4). Finally Speculative Price.
Now as per above the Stock of a Company falls in any one Categaries.
Now the Stock bought at stage one have a advantage from moving from Stage 1 to Stage 4.
And the Stock bought at Stage 4 has a disadvantage and finally moves from Stage 4 to Stage 1.
[3:02 PM, 11/26/2019] Jiten Patel: Friends if by any chance you have a concern regarding my sending so many messages please inform me so i will refrain from sending them.....
GDP growth @4.50%
Is it a good news or bad news for Stock Market.......
😀 Now what am I gonna tell you will surprise all of you and for sure you will not believe what am I gonna write below.....
Well GDP growth @4.50% is great and fabulous news for Stock Market for still climbing Higher Highs.......
First of all who doesn't know that business are not doing so good.....i mean everybody knows that the Indian Economy is going through Rough patch.... means the economy is at one of its worst phase.....so when everybody knows about the news it's already Discounted.....
So now what....???
Everybody must be thinking it is the end of India's Economy and we will not come out of this mess.....
Well you all are wrong..... infact the worst is getting over and we are heading towards a Robust growth trajectory.....I mean the economy in coming 2/4 years time is going to do superbly and all the pessimistic people are going to be proved wrong eventually......
I can write many pages of explanation why we are going up but in short i am ending by saying that the Economy and for that matter Stock Market is going to do wonders in coming 2/4 years time frame......
Happy INVESTING.....
The above is my personal opinion and view only and not a recommendation to buy or sell and I to be proved otherwise also
Lately if you have noticed that Economic Indicators are really bad for India......GDP growth is going down and Businesses are doing hand to mouth business...... Ground scenario and reality is very bad.....there is hardly any Liquidity in the Economy.......no fate and the animal spirit is missing......lots of scams..... lately Karvy broking....... thousands of NPAs are still to be unearthed.....US/China trade deal getting Dragged......No Credit given by Banks......
But above all these factors why is Mr Market going up...... when there is so much uncertainty doubt confusion in this complex world around us currently......
Well the logic is all this News and Factors are discounted by Mr Market.....i mean who doesn't know THESE......The whole world knows about the current uncertainty and doubts......
So the Bad news which are already there in the Domain gets discounted by the Smart Investors and they know that at the end of the Dark Tunnel there is Light......
So they by in Anticipation that maybe in next year or so all this Bad news will evaporate and the flow of Good News will and have to Eventually start.....
So they are all Buying today and Discounting the fact that the future will be good for the economy..... businesses...... and companies.....
So the more bad news flowing (Recency/Representative Bias) the more the Retail Investors will stay away from the market and the more this Smart Investors will buy and take the Markets to Higher Highs....
Now the beauty of this is by the time Economy businesses starts taking a U Turn from bad to good.....Markets will be way up at Astronomical Heights because the smart Investors have been Buying continuously.....Once the Market reaches Astronomical Heights..... Economic News are Coming Superb...... Businesses are doing exceptional good..... Retail Investors will run to Markets to Invest their hard earned money in Anticipation of making money from the Market......
But they are dreaming and it is a Illusion...... because now the Smart Investors are waiting for them to Come and invest in the Market at Astronomical Heights and they will be the ones who will start Off Loading their STOCKS to so called Poor Investors who have come to make money in the market because of so many good news flowing every where......
But they don't have a slightest clue that such things were already anticipated by the Smart Investors who were Buying continuously during Bad News Flowing and waiting to Sell to the Poor Investors when the Good News start Flowing....
So currently if you notice that the News Flowing today are all bad news but still the Market is going up ......
[9:40 AM, 11/26/2019] Jiten Patel: As long as the Poor Investors don't Run to Invest in market and jump the queue to be the first one to invest and feel FOMO to make Easy Money......till that time Markets will keep on going up and up and up.....
But the UP Trend will not be Linear......it will be completely Random with many corrections on the way.....
[2:53 PM, 11/26/2019] Jiten Patel: What is the Stock Price made of and Price at different stages......
Stage 1). Price below Value of the Company
Stage 2). Price at Value of Company
Stage 3). Price incorporating Growth of Company and PE expansion in Price
Stage 4). Finally Speculative Price.
Now as per above the Stock of a Company falls in any one Categaries.
Now the Stock bought at stage one have a advantage from moving from Stage 1 to Stage 4.
And the Stock bought at Stage 4 has a disadvantage and finally moves from Stage 4 to Stage 1.
[3:02 PM, 11/26/2019] Jiten Patel: Friends if by any chance you have a concern regarding my sending so many messages please inform me so i will refrain from sending them.....
GDP growth @4.50%
Is it a good news or bad news for Stock Market.......
😀 Now what am I gonna tell you will surprise all of you and for sure you will not believe what am I gonna write below.....
Well GDP growth @4.50% is great and fabulous news for Stock Market for still climbing Higher Highs.......
First of all who doesn't know that business are not doing so good.....i mean everybody knows that the Indian Economy is going through Rough patch.... means the economy is at one of its worst phase.....so when everybody knows about the news it's already Discounted.....
So now what....???
Everybody must be thinking it is the end of India's Economy and we will not come out of this mess.....
Well you all are wrong..... infact the worst is getting over and we are heading towards a Robust growth trajectory.....I mean the economy in coming 2/4 years time is going to do superbly and all the pessimistic people are going to be proved wrong eventually......
I can write many pages of explanation why we are going up but in short i am ending by saying that the Economy and for that matter Stock Market is going to do wonders in coming 2/4 years time frame......
Happy INVESTING.....
The above is my personal opinion and view only and not a recommendation to buy or sell and I to be proved otherwise also
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