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Thank you sir for sharing your views. When it comes to stock market investing, herd mentality prevails. This I believe is the primary reason behind even dud shares starts doing well at the time of boom and even good shares faltering at the time of downturn. People start investing in stock market when it has already reached or near to its peak and eventually lose money. There are umpteen examples of retail investors losing their hard earned money in stock market. This coupled with a series of scams in 1990s and 2000s led to disenchantment of many people from stock market. However importance of stock market in the economy can never be overemphasized as stock market is considered as barometer of country’s economy and share prices reflect every major change in economy and indicate overall direction in which economy is moving. More importantly it democratizes economy and gives fair chance to larger section of society to participate in country’s economy. Numerous companies were able to access permanent capital for their business plans through initial public offering (IPO) route. Reliance industries is an example of creation of world class enterprise largely through wider public participation via stock market route. If India has to become developed nation in next 20-30 years, a robust stock market with wider people participation is a must. Otherwise it will be very difficult for the country to augment required funds to grow at requisite rate of 9-10%. So there is serious need for increasing financial literacy and strengthening institutional framework in our country as this will ensure wider people participation in stock market. In my opinion, to prevent stock market from becoming shock market, one should do in-depth country, industry and company analysis before investing. Apart from this, an eye should be kept on international events and their impact on Indian economy. I believe fundamental analysis coupled with long term perspective is key to make money in stock market on sustainable basis. If at all a person does not have wherewithal to do such research, one can always participate in the stock market through mutual funds and leave the decision making to the experts. Legendary investor, Warren Buffet’s this timeless piece of advice can always be guiding principle for timing the investment- “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. If these principles are followed diligently, stock market investing can be made shock proof, at least in long run.

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