Buy now or stay invested

The recession should be over by 2009-end, says Daphne Roth, Head of Equity Research-Asia, ABN Amro Bank, on CNBC-TV18. The bear market could end by the first half of 2009, she adds. She sees a lot of forced selling due to fund redemptions in China, India and feels that it is sentiment and not fundamentals that are driving outflows from these countries. Investors should sell into a technical rebound and focus on companies with high cash component and low gearing, she suggests.

House View: This fall in market is purely temporary, more due to need of FFIs to sell their best performing portfolios to meet redemption/liquidity issues. It is because;'in a crisis one always sells gold at the first instance'. The smart broker always buys gold because it is being sold in distress and at a discount.Buy now or remain invested,we see the market at 14,700-15,800 levels very soon.
Disclosures: No personal holdings
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