Buying on dips is better than selling on rallies: Ramesh Damani

Market veteran Ramesh Damani, member, BSE has a special advice for young investors: Be bullish on India and don't be afraid of your own convictions and betting when opportunity seems right.

"The young people should understand that markets are magical, that you have to be patient, you can compound money over large periods of time and make a substantial difference to your wealth. Most importantly, the underlying tone must be bullish," he said in a interview with CNBC-TV18.

"A great business bought cheap is the best investment advice that I can give. Usually, lot of themes pre announce themselves and one has to have faith. Disappointments are a part of the investment process," he added.

Talking about the global markets, he said,"The Dow looks tired with the leadership stocks (FANG) under pressure. The yield curve is getting inverted that suggest oncoming recession and the trade war could be dampening for the US, he said, adding that all this would benefit India. Money would move out from developed markets to emerging markets as interest rates rise in the US, trade war settles. So as long as oil is round $70/bbl-$60/bbl, we will chug along."

According to him, Indian market will overcome election fears because it is in a sweet spot in terms of consumption, growth, demographics.

"Not wary of bull market ending. Buying dips is better strategy than selling rallies," said Damani.