{"id":1512,"date":"2019-09-10T11:24:00","date_gmt":"2019-09-10T11:24:00","guid":{"rendered":""},"modified":"2024-07-02T14:20:51","modified_gmt":"2024-07-02T08:50:51","slug":"is-it-worth-to-predict-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/is-it-worth-to-predict-the-stock-market\/","title":{"rendered":"Is It Worth to Predict The Stock Market?"},"content":{"rendered":"
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The festive season has begun. I decided to go shopping with a friend. As I waited for my friend on the skywalk, which leads to the market, I saw a little boy throwing paper planes in the air.<\/p>\n\n\n\n

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What is Stock Market<\/a><\/div>\n\n\n\n
Stock Market Analysis<\/a><\/div>\n\n\n\n
Bull Market<\/a><\/div>\n\n\n\n
How to Invest in Stock Market<\/a><\/div>\n<\/div>\n\n\n\n

I know he was littering in one way, but the excitement on the little boy\u2019s face was priceless. So despite being a supporter of Swachh Bharat Campaign myself, I thought it prudent not to stop him. I am sure we all have done such things as children and enjoyed the same thoroughly.  <\/p>\n\n\n\n

Coming back to the little boy, he had around 10-20 paper planes which he was throwing in the air from the skywalk after a gap of a few minutes. I noticed another little boy standing on the road below the skywalk, waiting to collect those paper planes.<\/p>\n\n\n\n

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Stock Market Basics<\/a><\/div>\n\n\n\n
Best Stock Market Investment<\/a><\/div>\n\n\n\n
Stock Market Holidays<\/a><\/div>\n\n\n\n
Market Indices<\/a><\/div>\n<\/div>\n\n\n\n

Few of those paper planes launched in the air went very high in the air. Some went far and out of sight. There was one absolute certainty which the little boy standing below on the road knew: eventually, after taking some unknown flight path, at some random location nearby, the paper planes will hit the ground and this was guaranteed!<\/p>\n\n\n\n

As I watched the entire episode, I found an interesting similarity with stock market<\/a> investment.<\/p>\n\n\n\n

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Stock Market Movies<\/a><\/div>\n\n\n\n
What is Nifty<\/a><\/div>\n\n\n\n
Stock Market Timings<\/a><\/div>\n\n\n\n
Share Market Tips<\/a><\/div>\n<\/div>\n\n\n\n

We often hear investors talking about new targets for Sensex<\/a> – 40k by Diwali, 42k by Christmas and many such. We also come across investors who talk about a looming global<\/a> recession which will push Sensex back to 30k levels or below. In short, we have different types of investors who are trying to guess the next movement in the market. <\/p>\n\n\n\n

Just like the paper airplanes which never took a predictable path and yet one could predict the final outcome, in stock markets too it is difficult to predict the direction of the stock market in the short term, but we definitely know in which direction the stock markets will move in the long term.<\/p>\n\n\n\n

Because in the long term it is higher corporate earnings and better economic conditions that drive the market, unlike in the short term, where any random incidents such as US-China trade wars, hike in oil prices, terror attacks, NBFC crisis etc. can affect the market. In short, long-term growth of markets is heavily dependent on the growth of the Indian economy. <\/p>\n\n\n\n

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What is Sensex<\/a><\/div>\n\n\n\n
Bear Market<\/a><\/div>\n\n\n\n
What is NSE<\/a><\/div>\n\n\n\n
What is BSE<\/a><\/div>\n\n\n\n
What is SEBI<\/a><\/div>\n<\/div>\n\n\n\n

In the short term, markets always witness extreme volatilities. Here are a few examples:<\/strong><\/p>\n\n\n\n