Dear All,
In the last few weeks Indian markets have seen an unbelievable rally which has surprised every participant in the market. Sensex & Nifty rose more than 10% in September making it one of the best monthly performances in Indian markets ever. October also saw a marginal gain of 2% showing follow up buying by the Foreign Institutional Investors.
Now when most of us are sitting on handsome profits, it is pertinent to examine if this rally is sustainable at all. And, if it is indeed, then what are the factors that make it different from the last Bull Run in terms of valuation or other parameters. To more and to delve a little deeper into the subject please read the attached document.
There is no end to arguments regarding valuations and pricing of stocks in any market. But, amidst all these arguments what we should not forget is the fear of last crash is still reminiscent in our mind and it is only natural that a shadow of that will keep us haunting for times to come. Remember, markets never behave the same way and if they did, wouldn’t it mean all of us could create so much wealth effortlessly, especially the historians who would be richest of us all!.
In stead of speculating about the short-term gyrations of the market, which is just a noise in the long-term scheme of the things, it should be imperative for a prudent long-term investor not to be carried away by such fears and noises and stay invested till the first signs of a severe macro-economic reversal appear on the horizon.
Happy Reading !
MOHIT
