Hello Friends,
Enjoying the long weekend huh!? That is awesome, leveraging these long weekend time offs and recharging your batteries is important.
Indian markets are hovering at all time highs. You will see that even companies with very poor fundamentals - poor financial record, zero moat, high debt and no earnings visibility etc. have also run up a lot in their stock price. This is the very nature of the markets - an auctions marketplace.
Some of my blog readers asked me this question - What do you do when the markets are overvalued with NIFTY PE Ratio = 23.63!
Here is my view on this - Firstly whether the market is overvalued or undervalued is a subjective view, depending on each investor as to how he views it. In the market when one buys another sells the same company stock!
In my view the markets are overvalued. I am right now finding it difficult to find stocks that meet my investing principle - Growth at a Reasonable Price (GARP)
So what do I do?
Investing is not a 20-20 Cricket match, its a Test match. Neither its a baseball game, you dont need to swing at the ball every time.
In a bear market - my focus is on BUYING...
In an overvalued, overheated market, I - READ, in some cases would BOOK PROFITS if the price of any of my stocks have run up way too much above its intrinsic value due to the overall GREED of the market participants!
Chao!
Enjoying the long weekend huh!? That is awesome, leveraging these long weekend time offs and recharging your batteries is important.
Indian markets are hovering at all time highs. You will see that even companies with very poor fundamentals - poor financial record, zero moat, high debt and no earnings visibility etc. have also run up a lot in their stock price. This is the very nature of the markets - an auctions marketplace.
Some of my blog readers asked me this question - What do you do when the markets are overvalued with NIFTY PE Ratio = 23.63!
Here is my view on this - Firstly whether the market is overvalued or undervalued is a subjective view, depending on each investor as to how he views it. In the market when one buys another sells the same company stock!
In my view the markets are overvalued. I am right now finding it difficult to find stocks that meet my investing principle - Growth at a Reasonable Price (GARP)
So what do I do?
Investing is not a 20-20 Cricket match, its a Test match. Neither its a baseball game, you dont need to swing at the ball every time.
In a bear market - my focus is on BUYING...
In an overvalued, overheated market, I - READ, in some cases would BOOK PROFITS if the price of any of my stocks have run up way too much above its intrinsic value due to the overall GREED of the market participants!
Chao!
