New Bull Market

Rajesh Sharma

This is time to hold on emotions, stay safe from an epidemic called  market rumor, look into fundamentals of companies, overcome greed of quantity of shares that could be increased heavily and to stay back and go counting on basics - basics of companies, basics of sectors, basics of the state of national economy and equally or a bit more on the basics of political upheavals.

This is a bull market and that may continue provided politics will not create havoc. But, the speed the index has moved up may loose its speed. The momentum in the market has been created not  by objective  factors such as political stability, enhanced and accelerated economic growth, long term favorable policy interventions and emergence of new factors that impact highly positively over the market. The major reason of the increase in index is the possibility of increase in quantity/number of shares through bonus/rights/FPO etc as the regulators - NRB and Insurance Board have asked to increase paid up capital by a few folds. This is, as such, is subjective factor and may get nullified by any type of change in policy or modification in some form.

I think, when we will start using the analytical as well as critical part of our center of reasoning located some where inside the brain, we could find out good or bad almost any time of the day or night. Right now also the same is applicable.  Hence, finally, it is now absolutely necessary to do our home work properly to insure that we must not let the speeding bus go without boarding us but at the same time, we should be cautious not to have a major accident due to our hurry. Let's be rational, continue buying and selling and remain active in the market being informed, being analytical, being as objective as possible, taking calculated risk as much as possible. Rest, we should leave to market.

CHCL going down

Rajesh Sharma

Due to the damage caused by Radha Gyawali and earthquake, Chilime has lost its shine to a great extent. It is now not so attractive share for traders. The banking boom also negatively affected it. However, Chilime is the horse for long race. Investors would get good return if they will hold for 2 to 3 years from now. By that time Chilime's some new projects would be at final stage of completion. If not higher dividend, the higher capital gain could be there by that time and higher profit may follow in the coming years.

Busy!

Rajesh Sharma

Friends,
For the last three months, I was in some other assignments including relief work for earthquake affected people. Hence, I could not be so regular in writing comments and posts. From now on, I will try to contribute regularly.