Colombo Stock Market capital gains have exceeded over 30% during the last 12 month. (Image-1). The Smart investors who entered the CSE below ASPI 8000 levels which was the lowest level ASPI felt during last 12 months, gained over 30% to dated whilst investors who exited the stock market around ASPI 10,500 levels gained 23%.
However the Investors who entering the stock market at current ASPI levels of 11,500 will have to wait until APSI reach 12,540 to make 10% gain.
10,500 was the 1st sell point for those who bought at 8000 with a gain of 23% whereas 11,500 is the 2nd sell point with 30% gains. Benchmark sell trigger start at 20%. 80% of investors sell at 20% gain. 20% investors sell at 80% gain. 80/20 rule.
Is it worth the risk investing at current market levels? Are there any alternatives?
Those who exit from the market, it may be worth considering investment in treasury bills as the the current yield of 18% per annum is still attractive as a stable and risk free investment returns for 2023/24.
When to Enter the Stock Market again?
https://tradingeconomics.com/sri-lanka/stock-market
Next point of Entry to Stock Market Investors would be prior to 2024 Presidential Elections. Ideally Between April - Nov 2024, obviously after IMF 3rd review in March 2024, hopefully below ASPI 10,000
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