Fixed Deposits

can fixed deposits come back to the stock market from Monday ?

FD vs stock market - a big game ahead

If one bought certain picks for short term when ASI was 4800s , they would have gain more than 1 year FD rates in a few months. Only few days ago I mentioned a penny stock with fundamentals. It gained 15% already.

There are opportunities for the keen at CSE. Both short term and long term. But one has to play safe and know what they are buying and according to their holding power. There are many fundamentals now which have not run much that can gain 10-20% in short time if they move as opposed to loosing 10-20% if market drops. ( gain/risk)

BTW market will have red days in the future as it will not go up straight. If one is concerned about holding and long term, then there opportunities as I mentioned above that will beat FD rates.

I also earned decent dividends recently and will earn in the future. My calculated holding onto JINS for example and adding a bit more seems to have played off. In the worst case I will earn 9% and even if there is drop of the share for 1 year ( worst case), I know it will recover to current price within that period or have another dividend. Beats savings accounts atleast.

http://www.ft.lk/2012/08/29/treasury-bill-way-increases-across-all-maturities/

I don't think anyone can give good reasons for the current uptrend. It's just based on a news of SEC head being replaced....

I sold on this news and cut my losses a bit because in my personal opinion this is not a true reversal. I'm not saying it will collapse, but I find it hard to believe that the market will reverse given the current economic conditions.

But I'm a total noob, I can be absolutely wrong... just stating my humble opinion... (don't jump on me now)

Cheers!

Yes I got around 15% gain from shares I bought last months. But still in loss due to last year down trend. Hope I will be able to recover them in near future.

anubis wrote:http://www.ft.lk/2012/08/29/treasury-bill-way-increases-across-all-maturities/

I don't think anyone can give good reasons for the current uptrend. It's just based on a news of SEC head being replaced....

I sold on this news and cut my losses a bit because in my personal opinion this is not a true reversal. I'm not saying it will collapse, but I find it hard to believe that the market will reverse given the current economic conditions.

But I'm a total noob, I can be absolutely wrong... just stating my humble opinion... (don't jump on me now)

Cheers!

hi anubis,

why you say this is not a true reversal ? it has been dropped to 4800 levels & PER below 10.

Yes current economic condition is not much good as we thinking. But do you think our companies performances will going down in coming years ? & because of that market PER will rise to 15 level with out price increasing??

still PER at 10.61. CSE is still showing against the FY 10/11 report.

I am not criticizing you, but just clarify above questions

I am always a believer on CSE than FDs. Since my entry into CSE in 1996, I made most of my savings in CSE and still the same.

True, we had a disaster in 2011 and up to about Feb. 2012. Since then I earned average profits from trading. I re-started my monthly savings in CSE again in March after stopping investments in CSE in August 2011.

When the market starts the ascending from 4750 levels I made a considerable investment into my trading portfolio. It started with GREG and HVA, and then with PCH. HVA had couple of cycles. Then it was REEF.W19 which gave almost 250% returns. Profits were gone to SWISTEC, Renuka Group, PHAR and REXP as investments. I withdrew the new capital, when market couldn’t sustain in the 5000s, expecting it will go back to 4700s as most of the guys are talking about the double bottom. When it was certain it’s not happening again, I put my investment back, again my choices were the same lot.

Take market ups and downs as opportunities. If you capitalized the rally, it’s easy absorbing the shocks.

If consider my new investment which I made when index was at 4700s, my return is almost 100%.

I can't understand why people are lamenting about CSE. Some guys always negative, they sell at loss and then asking others also to follow. So every time “slstock” have to show the positive side. Again very same people are starting the same negative thread, again and again.

Just, be positive guys. When there is a rally earn the maximum. When it cools re-adjust your positions. When compare to other countries we are reporting high growth rates. So why does market should become negative. USA, EU in a mess-up. Hong Kong and China very sensitive to EU and US. But look at their markets. When things are negative markets go down. When people got adjusted, markets also returning to normal. But our guys always want to go down. They hate recovery. Look at the movements in Hong Kong market. It's a dream market for me.

Please understand the real fundamentals. Why you afraid to put your money on REEF.W19 when it’s bellow Rs.3/-. Conversion date is in 2015. How many things can happen in between. I saw a huge opportunity. I know several guys in this forum capitalized on it too. I don’t think even now it’s too late.

THE BASIC THING I SAW IN THIS MARKET, AFTER HITTING 4700s, MOST OF THE SHARES RE-POSSIONED TO NEW VALUES DAY BY DAY. LOOK AT THE MOVEMENT OF HVA, GREG, REEF, ETC. IF YOU ARE TELLING THOSE ARE SPECULATIVES, LOOK AT THE MOVEMENTS OF PARQ, JKH, REXP, RENUKA GROUP, ACL GROUP, ETC. MARKET AND THE SHARE PRICES ARE ON A ZIG-ZAG. BUT ON A UPWARD MOVEMENT.
This movement didn’t start with the change of SEC chairman. Movement was slowly happening for about 12 weeks. Changes gave the much needed boost to sustain above 5000s.

Other thing is understand the real people who want to move the market down. Look at the Daily Mirror head line on the day new SEC head was appointed. IT was very old news and some investigations were completed about a year ago. But they put it as the main head line. By Friday it got back-fired. GREG quickly capitalized on it. I think other companies also follow the suite.

I may wrong. But I strongly feel that “WE SAID BYE TO 4000 LEVELS” now, unless something terrible happens. Why I say this is markets are always react well before the news. Most analysts are predicting CB will lower the interest rates most probably before the year end. If not by very early next year. So it’s only 3-4 months.

For a market to show a sustainable growth, there should be a good balance of traders and investors. If traders have upper hand, while the market goes up they will pull it down by more selling. But if there is a good balance of investors, they will off-set such effect and push the market up in a sustainable way.

Many shares are trading at big discounts and there are plenty of value shares. I hope many investors are slowly entering the market with medium term in mind. SEC appointment can only be a trigger point. It is not the sole reason for the upward trend.

I feel that market will have a sustainable growth from here, to a point where traders outweigh investors and pull down it.

hariesha wrote:I am always a believer on CSE than FDs. Since my entry into CSE in 1996, I made most of my savings in CSE and still the same.

True, we had a disaster in 2011 and up to about Feb. 2012. Since then I earned average profits from trading. I re-started my monthly savings in CSE again in March after stopping investments in CSE in August 2011.

When the market starts the ascending from 4750 levels I made a considerable investment into my trading portfolio. It started with GREG and HVA, and then with PCH. HVA had couple of cycles. Then it was REEF.W19 which gave almost 250% returns. Profits were gone to SWISTEC, Renuka Group, PHAR and REXP as investments. I withdrew the new capital, when market couldn’t sustain in the 5000s, expecting it will go back to 4700s as most of the guys are talking about the double bottom. When it was certain it’s not happening again, I put my investment back, again my choices were the same lot.

If consider my new investment which I made when index was at 4700s, my return is almost 100%.

I can't understand why people are lamenting about CSE. Some guys always negative, they sell at loss and then asking others also to follow. So every time “slstock” have to show the positive side. Again very same people are starting the same negative thread, again and again.

Just, be positive guys. When there is a rally earn the maximum. When it cools re-adjust your positions. When compare to other countries we are reporting high growth rates. So why does market should become negative. USA, EU in a mess-up. Hong Kong and China very sensitive to EU and US. But look at their markets. When things are negative markets go down. When people got adjusted, markets also returning to normal. But our guys always want to go down. They hate recovery. Look at the movements in Hong Kong market. It's a dream market for me.

Please understand the real fundamentals. Why you afraid to put your money on REEF.W19 when it’s bellow Rs.3/-. Conversion date is in 2015. How many things can happen in between. I saw a huge opportunity. I know several guys in this forum capitalized on it too. I don’t think even now it’s too late.

THE BASIC THING I SAW IN THIS MARKET, AFTER HITTING 4700s, MOST OF THE SHARES RE-POSSIONED TO NEW VALUES DAY BY DAY. LOOK AT THE MOVEMENT OF HVA, GREG, REEF, ETC. IF YOU ARE TELLING THOSE ARE SPECULATIVES, LOOK AT THE MOVEMENTS OF PARQ, JKH, REXP, RENUKA GROUP, ACL GROUP, ETC. MARKET AND THE SHARE PRICES ARE ON A ZIG-ZAG. BUT ON A UPWARD MOVEMENT.
This movement didn’t start with the change of SEC chairman. Movement was slowly happening for about 12 weeks. Changes gave the much needed boost to sustain above 5000s.

Other thing is understand the real people who want to move the market down. Look at the Daily Mirror head line on the day new SEC head was appointed. IT was very old news and some investigations were completed about a year ago. But they put it as the main head line. By Friday it got back-fired. GREG quickly capitalized on it. I think other companies also follow the suite.

I may wrong. But I strongly feel that “WE SAID BYE TO 4000 LEVELS” now, unless something terrible happens. Why I say this is markets are always react well before the news. Most analysts are predicting CB will lower the interest rates most probably before the year end. If not by very early next year. So it’s only 3-4 months.

thank you for your sharing

Wow, I showed a tiny bit of negativity and we can see a load of positivity coming around to compensate for it.

Ok Ok, I don't question your opinions. After all, I started investing only at the end of 2010... I'm just a nobody here, still a lot of things to learn for me.

May be the market has turned around as you all point out. I haven't pulled out of the market, only made some adjustments just in case (risk mitigation).

If everybody is as positive as the posters above, then the market will indeed turn around. No doubt about that.

Let's wait and see where it goes. Thanks everybody for commenting

Cheers!

anubis wrote:Wow, I showed a tiny bit of negativity and we can see a load of positivity coming around to compensate for it.

Ok Ok, I don't question your opinions. After all, I started investing only at the end of 2010... I'm just a nobody here, still a lot of things to learn for me.

May be the market has turned around as you all point out. I haven't pulled out of the market, only made some adjustments just in case (risk mitigation).

If everybody is as positive as the posters above, then the market will indeed turn around. No doubt about that.

Let's wait and see where it goes. Thanks everybody for commenting


Cheers!

ahaaaa....... positive signs from anu...

bears are turning to bulls. "confidence" what a word.........

@opfdo: He he, not really, I'm still bearish

But you know, I'm not an experienced investor, so I have to watch out not to give "pora talks" like I know everything about the market... while the truth is I know next to nothing. So I have to show respect for the senior members and hear what they have to say. That doesn't mean I listen to them... I make my own judgement... win or lose, it'll be on my own judgement...

While I am bearish, I can't say the market will go down... (nobody can) so I have made some adjustments so that in either case I won't have to worry too much... (less return, but less risk too).

I hope you understand

Cheers!

anubis wrote:@opfdo: He he, not really, I'm still bearish

But you know, I'm not an experienced investor, so I have to watch out not to give "pora talks" like I know everything about the market... while the truth is I know next to nothing. So I have to show respect for the senior members and hear what they have to say. That doesn't mean I listen to them... I make my own judgement... win or lose, it'll be on my own judgement...

While I am bearish, I can't say the market will go down... (nobody can) so I have made some adjustments so that in either case I won't have to worry too much... (less return, but less risk too).

I hope you understand

Cheers!

OK anu, it is up to you, what i have to say is "all the best".

Be cool guys. Take market ups and downs as opportunities. If you capitalized the rally, it’s easy absorbing the shocks.

Problem wit the CSE is, its about finding a better fool to unload your stocks! When some one gains some one has to loose! Or in most cases when 1 big gun wins 100 investors have to loose their hard earnings! This will not stop at least on the near future in CSE ( next decade).

Only place where you can have a win win situation is, if companies make huge increase in profits and GIVE AWAY MOST OF IT AS DIVIDENDS!

Until we get a law or legislation passed that companies at least have to give away 50% of its earnings definitely to its share holders, CSE will be about passing away your stocks to some sucker!!

Rajitha wrote: Problem wit the CSE is, its about finding a better fool to unload your stocks! When some one gains some one has to loose! Or in most cases when 1 big gun wins 100 investors have to loose their hard earnings! This will not stop at least on the near future in CSE ( next decade).

Only place where you can have a win win situation is, if companies make huge increase in profits and GIVE AWAY MOST OF IT AS DIVIDENDS!

Until we get a law or legislation passed that companies at least have to give away 50% of its earnings definitely to its share holders, CSE will be about passing away your stocks to some sucker!!

How about buying plantation stocks ?, Will tea and rubber prices will sky rocket as in past couple of years as you correctly predicted , If we buy plantations stocks now would you be a greater fool to buy them from us in couple of months ?

WildBear wrote:

Rajitha wrote: Problem wit the CSE is, its about finding a better fool to unload your stocks! When some one gains some one has to loose! Or in most cases when 1 big gun wins 100 investors have to loose their hard earnings! This will not stop at least on the near future in CSE ( next decade).

Only place where you can have a win win situation is, if companies make huge increase in profits and GIVE AWAY MOST OF IT AS DIVIDENDS!

Until we get a law or legislation passed that companies at least have to give away 50% of its earnings definitely to its share holders, CSE will be about passing away your stocks to some sucker!!

How about buying plantation stocks ?, Will tea and rubber prices will sky rocket as in past couple of years as you correctly predicted , If we buy plantations stocks now would you be a greater fool to buy them from us in couple of months ?

If I were you, I wouldn't jump the gun on that

WildBear wrote:

Rajitha wrote: Problem wit the CSE is, its about finding a better fool to unload your stocks! When some one gains some one has to loose! Or in most cases when 1 big gun wins 100 investors have to loose their hard earnings! This will not stop at least on the near future in CSE ( next decade).

Only place where you can have a win win situation is, if companies make huge increase in profits and GIVE AWAY MOST OF IT AS DIVIDENDS!

Until we get a law or legislation passed that companies at least have to give away 50% of its earnings definitely to its share holders, CSE will be about passing away your stocks to some sucker!!

How about buying plantation stocks ?, Will tea and rubber prices will sky rocket as in past couple of years as you correctly predicted , If we buy plantations stocks now would you be a greater fool to buy them from us in couple of months ?

Unless you live under a rock or have no clue you should know that the rubber prices are really low now! Also demand for tea is uncertain with its main buyers uncertain positions! For people like you the biggest thing would be when to buy stocks. Don't go join a rally or buy sticks because you saw it in a forum! Specially if the season to buy a stick is in January and you buying the stock in September!

And thanks for taking time to remind that I have correctly predicted the rubber prices last year! IT went up as I said and came down as said as well after about 6-7 moths later!

Fixed deposits rates will be increased further more in the recent future as an effort of keeping the rupee stable by reducing the liquidity. It was said by two finance companies separately which I deal. So, If you gonna open a fixed deposit it is worth to select a short period, better 3 months. This is my thought and I mention it as of a help for new depositors. No need to follow it as I said.

Stock trading is able to make you a considerable and better return than put your investment in a fixed deposit. Old investors that I personally know have achieved extreme successes and they were able to put big steps forward in their lives. I'm sure there were no crashes in the past like this. Our innocent objectives had been vanished by thieves in CSE and SEC and that my statement at the beginning has been become false. I calculated the difference between the return that I gained from stock trading and how much would I able to earn if I put it in a fixed deposit and that value passed Rs.46000 although my investment is not a very big amount. If there were no crashes, I surely know that I could have earn twice than that loss. Nothing to do for now, just to see to come out from this deep pit at the correct time. But I'm happy because I was not foolish to sell my shares at losses and swallow deeper.

Dear friends, We have no hard confidence that share market will act correctly after it is recovered totally. So, be very careful, take less risk and try to follow several investment options. I have no idea to resign from stock trading, but next time I shall reduce my risk. I'm interesting to get challenges and win them as possible. This is also a real challenge. Remember, If you have been holding your shares even thousand of investors had been giving up the game, you are a winner. Don't miss any opportunity that you receive and maximize your income as much as possible. All the best for all current and potential investors working in this field and going to enter into this field.

Mr Rajitha, do not try to be a hero. You never told rubber price were to decline. Instead you told every one to sell their underwear and buy rubber, and plantation stocks when the tea and rubber prices were at peak and since then rubber prices started declining.. May be during that time you must have disposed them to a greater fool.

If you can predict comodity prices with that accuracy, you should be in a top position at Goldman Sachs, and can't be waisting time at internet blogs.

WildBear wrote:Mr Rajitha, do not try to be a hero. You never told rubber price were to decline. Instead you told every one to sell their underwear and buy rubber, and plantation stocks when the tea and rubber prices were at peak and since then rubber prices started declining.. May be during that time you must have disposed them to a greater fool.

If you can predict comodity prices with that accuracy, you should be in a top position at Goldman Sachs, and can't be waisting time at internet blogs.

Unlike 2 post wonder boys here with 2 cent brains I never said anyone to buy any share any time! Although I have said people to not buy crap shares! Please show posts where I asked people to BUY shares or (specially plantations) ? And when they are going down specifically.
All i Said did was analysis of the earnings! And as I said they showed great earnings! As an investor and academic what I do is logically think and analyse companies. Not go in front of a magic ball and ask if prices go up or down tomorrow.

Also when I posted the plantations stocks were making great earning and they did have a nice run for a while. And prices did go up ! But some retards in here think the prices will remain in those regions for ever. ( that does not happen in any market in the world. specifically for stocks that gets effected by seasons) So even after months and months later they come and post, 'hi those shares are now down', or 'the earnings are going down!' Learn about companies and their business and CSE 1st! Not go and buy shares on some ones tips. Specially If you don;t have the comprehension to even understand what that person is saying ! OR to read them in a timely manner!

Before we go further into off topic, topic being fixed deposits, I would like to mention this while taking no sides and as a general member of the forum.

This forum never gave investment advice nor did it encourage people to give such. Anything members posted here with genuine intent, could have gone right or wrong. If analysis and predictions went right most of the time, then those would have got a good rep.

Even many research reports sometime back gave huge buys for many companies, which at that time, looked fair enough as well. I am talking about all companies here not limited to any sector.

If posts which mandated people to BUY or SELL were existent at that time it was definitely an oversight of the moderators. BUT, no one here is forced to make decisions here. This is the internet - be aware.

@Roboticfx: Thanks for the news on the FD rates. I'm also in the same position as you are, would have made a similar gain if I had invested on FDs. However, I will never regret investing in the stock market: I've learned a lot without burning all my savings!!!

Pulling out of the market cannot be justified, experience counts a lot!!! But it would be foolish to invest all of your money in the stock market expecting a "massive bull run" with the current economic conditions.

Cheers!