Imagine a scene from a typical 1990s romantic Bollywood movie. The heroine is sitting with a friend under a tree pulling leaves from a stem while chanting, “He loves me? He loves me not? He loves me…”
Her idea is to reach a positive response (‘He loves me’) by the time she reaches the final leaf.
Now replace the heroine with a stock market investor, and you might not need to replace the scene. Most investors I meet these days have the same question to ask.
“Should I Buy Stocks? Should I Wait? Should I Buy Stocks? Should I Wait?”
I hope that ‘leaf strategy’ worked in the stock markets as well!
Anyways, before we move ahead to answer this question our way, first let us look at this chart that shows the movement of Sensex and its P/E (price to earnings) since the start of the financial crisis in 2008.
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