As Indian Stock Markets Wobble
With elections underway in India — the stock markets has butterflies in her stomach. This is a great video — do watch if you understand Hindi and have money invested in markets — lot of wisdom here that would help you become a better investor. I am appending herewith show notes from this video:
00:18 sell in may and go away — Indian Mkts usually don’t do well in May
1:51 PE < 0 is cheap , >30 is costly — in general
2:18 Now Nifty PE is 23 — Avg PE of markets is 24–25 — so valuations are ok
3:16 But Nifty, MidCap,Small Caps, and sectors like Metal are at all time high
4:03 from a 2–3 months perspective Indian Markets look overvalued — othewise they are doing fine
5:20 10–12% fall expected in short term
6:17 Have diversified portfolio — with 20 stocks and not more than 5% in each stock, with a 2–3 years horizon , each stock having a growth potential — would help you weather such storms
7:10 Behave like an adult while investing in markets, 5–10% portfolio loss at any time is a given in markets, otherwise choose FDs
11:53 recovery will happen in next 2–3 months due to enough liquidity in US markets (reverse repo rate fund explained) — US november elections to be kept in mind
12:43 US Interest rates news would also help the markets
14:13 Indian markets are favouring the rich segment of the society (the good times are not ringing for the poor still), so finance stocks would do well, sectors favouring the rich would be doing well (ex.auto)
15:30 HDFC Bank is good, Jio Finance is good
16:10 Once an industry is left deeply discounted only then money flows into it
