Mukul Pal: You make money if you buy before the buzz starts

Investors should act contrary to the market's majority sentiment and buy when everybody sells in order to take advantage of the low prices, believes Mukul Pal, executive manager of consulting firm Orpheus Capitals. "After a 90% fall, markets are very attractive for acquisitions. Although there will be further declines, this will make markets even more attractive. However, investors tend to buy when they ought to sell, and sell when they ought to buy. That is why they should act contrary to what the majority does or thinks. Money is made when you buy before the buzz starts, before investors get overexcited," says Mukul Pal. Orpheus Capitals, an investment consulting company in Cluj-Napoca, is held by Indian analyst Mukul Pal. Mukul Pal specialises in technical analysis (predicting the future progression of asset prices based on their trading history), having collaborated with BT Securities and previously with Broker, both based in Cluj. Among the most renowned investors who have bet against the general trend of the market and won are Warren Buffett and Marc Faber. They believe that the general consensus of investors can lead to a depreciation or to an overvaluation of share prices, so they make acquisitions when most investors are pessimistic, and sell and liquidate their stakes in times of euphoria.