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Tuesday 26 November 2013

SENSEX fails to deliver: Six Sideways Years

The last few years have been rather disappointing for most avid stock market investors, when compared to the boom period that we experienced earlier.  The India shining story seems to have been put on hold, as we struggle with rising inflation and slowing growth.  Political inaction, which was always a concern, has morphed into political paralysis, with the government seemingly unable to take any action at all, let alone the right economic actions.

In this scenario, it is instructive to take a look at the last 6 years from a stock market perspective, and see how the benchmark SENSEX index has performed, and what strategies we could or should have used to build on our investments.  I did not necessarily follow some of these principles myself, which has led to my sub-par portfolio results.  However, this exercise is useful to figure out what actions I should take in the future to keep my portfolio moving at the right pace in the right direction to hit my financial goals.