Where to invest in a meltdown?

BANGALORE: In a meltdown like this, where everything looks so uncertain, where does one invest one’s money? In US, many are actually just holding on to cash — whose value will only decline to the extent of inflation. Some here still see hope in certain stocks.Hitesh Agrawal , head of research at Angel Broking, admits market sentiments could take stocks down to any level. “But if the fundamentals of a company are strong, you can pick up its stocks irrespective of good or bad times,” he says. Real estate stocks are seen to be best avoided now because more correction in property prices is expected in the next 12-18 months. Consequently , cement companies are also not a value buy at this time. Last quarter was bad for this sector and this is unlikely to change in the coming four to six quarters. It may also be wise to stay away from the non-ferrous metal sector.“However, investors can look at auto, banking and infrastructure as they offer a lot of opportunities. FMCG and media are also good options as these are not interest rate sensitive,” says Agrawal.Wealth managers say it’s advisable to enter the market with a long-term view. “First time investors should invest systematically with a long term plan of three to five years.