In these turbulent times with stock markets witnessing some of the biggest single day, single week losses, and the apparent root cause of US recession still looming large, retail investors have been shying away from the markets.

The markets, even despite four sessions of recovery from their fall after touching peak of 21000 levels are yet to touch or cross 19000 levels. Next few sessions are likely to be very choppy and are expected to be governed by the sentiments and expectations preceding budget. The markets are yet to gain strength and any adverse news, howsoever, minor, can trigger another wave of downslide. The likely news could be recession in US or any adverse move in the budget.

Touching budget part first, this being last budget for the present government, any adverse of tough measures are almost ruled out, though P Chidambram is known to throw surprises even at the cost of popularity of his government.

So, it appears for a lay investor ( I feel after the current fall in stock market, many experienced players would call themselves as lay investors) it appears that the initial public offers (IPOs) in the market remain the best bet. If new fund offers (NFOs) arouse your interest, staying updated with latest offering is the right thing for you.

In today’s scenario, it is tough to advise any form investment as you never know if markets again touch or cross 21000, but staying in sidelines appears a safe bet.

Avoid being an investor who is looking for immediate returns from the bourses; don’t forget that investment is only one part of managing personal wealth.

It’s important that you should have enough liquidity in your portfolio, if any need arises. So, if again the markets register major fall you should have enough cash at hand to gain from immediate correction.

The market is too volatile to make fresh investments and a correction is imminent. Cash-in-hand is also necessary if you have taken forward buying or selling positions, just in case the market does not move as predicted. Investment in shares is desirable though the extent to which it should be in your portfolio depends on the age and risk profile. It is almost impossible to time the market. Steady investment spread over a period of time such as through Systematic Investment Plans (SIP) and with a long term investment horizon (5 to 15 years) is best suited for this purpose.

It’s pertinent that for a balanced portfolio, you need to re-work your maths before investing in the spur.