Still good times

This is a great time to be testing what an investor is made of. For many weeks now, punters have been running scared of the high levels that the Indian stock markets have attained. As I write this article on January 18, the markets are down about 3 per cent over the last two days. Obviously, many big names are spluttering, in particular, HDFC Bank. Anyway, there's no point in my labouring over the details because you're reading this page much after I have written it, and a lot more would surely have happened in the meantime. However, for anyone who has spent any time observing what investors actually do, there are three clear subtypes, each of which is clearly visible over the last few days: 1. There are investors who choose to sell their stocks during even a small downturn, driven by the fear that the stock might not recover and their losses could become permanent. 2. Others opt to hold onto their stocks, believing that the decline is temporary and confident in the stock's eventual recovery. 3. A third group sees the reduced prices as an opportunity to increase