So, the mountain peak has been climbed and the green valley on the far side is now visible. I’m referring to the elections. For months now, the Lok Sabha elections had loomed like a mountain in front of equity investors. They had no choice but to climb it but had little idea what lay beyond. By now, from the reaction of the equity markets, we know what investors think lies before them.
In the language of traders, what the Indian equity markets are seeing now is a ‘relief rally.’ The ide ..
However, the headlines tell us that the business and economic news are not good. The rate of GDP growth has dropped to 5.8 per cent over the January-March quarter –– the lowest in five years. The news from sectors like automobiles is alarming with bellwether Maruti’s sales shrinking by 22 per cent over a year ago, which is the worst drop in seven years. Corporate numbers are in the doldrums and any strength in stock prices are making equities overpriced than they are. More broadbased indicators ..
For the individual investor, it’s pretty obvious what path to take. Keep investing steadily, ideally through SIPs, ideally in a small set of equity mutual funds. Through good, medium and bad times, that’s the route that’ll give you the highest likelihood of meeting your financial goals.
This raises an interesting question: what would have been the right advice had the election results been different? What if we were currently in a situation where ministries were being sold to the highes ..
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