Beware of price cuts

Understanding Investment vs. Consumption

• Discounts are not always beneficial for investments.

• Investments aim to sell assets at a higher price later, not to hold them forever.

• Understanding investor behavior is crucial.

• Stocks trading at a steep discount to recent highs should be for a reason.

• Institutional investors drive stock market trends.

• Stocks trading at a discount may take a long time to rise in price.

• Investing via systematic investment plans (SIPs) in equity funds for core portfolio is optimal.

• Taking advantage of price discounts is possible when the entire market declines sharply due to unexpected negative developments.

• Individual stocks should be kept outside core portfolios.

• Trading to capture short-term market fluctuations is optimal.

• Success is likely when stocks are bought on price momentum, not steep price discounts