The market will remain fascinating as always
3-year return negative 5%
Single week return positive 5%
Add 7% absolute return of today.
Timing the market is pretty much difficult for investors
There are techno~funda~mentalist but all the market participants share the brunt of the super-smart market itself. No one is supreme here.
Gross asset allocation & Fund allocation and within fund allocation sector allocation holds the key.
Last month 1/3rd of the market cap got wiped off from the equity portfolio in a locked downstate. Those who are sheer traders are struggling with the volatility and those who are long-term investors are struggling to grasp the new reality.
There is no escape route and no amount of pacifying words will bring back the money that got deflated with the index. It’s my earnest request to add on to the equity portfolio once the market settles down, especially in beaten down and good quality stocks to the tune of 50% of the existing size of your portfolio. If you have debt allocation, shift funds from debt to equities.
For eg, 100 is now 70 (1/3rd reduction), add 50% of 70, or 35 to make it 105. This 50% allocation should be in 3 tranches (16% each time)
Interest rate is down 1% in fixed instruments and individual businesses will take a toll going forward as small enterprises lack control or reach.
The market is reasonably valued now. However, more corrections can’t be ruled out. My investment inflex points at
8000, 7000, 6000 to the way downward.
10000, 11000 and 12000 to the way upward.
Please do not panic or get disturbed, indifferent, annoyed with the current state of the portfolio as these situations are part of equity investment.
We are all available for fund selection, portfolio assessment, switch requests, and fresh fund allocation strategies.
Stay safe and be happy.
Good luck! Happy investing with
Jp Investments.
www.jpinvestments.co.in
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