Be fearful when others are greedy

...and Be greedy when others are fearful.

This is what world's wisest investor warren buffett say about investing.People who are extremly greedy one month before have become over cautious and fearful now a days and taking their money out of stock market . Now almost all the analysts are coming out with crazy predictions upto what extent sensex can fall. Yesterday in CNBC first global Shankar Sharma predicting sensex would go back to 4 digits(http://www.moneycontrol.com/india/news/market-outlook/sensex-may-fall-another-20-by-yr-end-first-global/01/56/325643).I dont know what the analysis he has done but historically sensex has never traded below 13PE even in bear markets.If we can predict 975-1000 EPS for sensex for 09 . Even in bear market situations we may not go below 14000.

Because of these kind of opinions which didn't hold any rationality all the investors are going into panic selling. In the last 3 weeks whatever happend whether it is up or down doesn't really matter as the volumes are quite low in these days, and market may take time to pickup volumes and settle and start its journey.
At that time again same analyst will come and tell you to buy shares at 20K levels.So Beware of the analysts.

As all the analysts are predicting the market would fall deeply , we can safely assume that it is right to buy stocks.

RK