Be choosy. Selection matters.

When you are surrounded by over exuberance, choose your company well.

The stock markets have a strange way of fixing smartness. Its ruthlessness in fixing the over smart is characteristic and legendary. And, how? The overconfident lot tends to corner them so badly that the only option before them is to blink and make that big mistake. Investors who thought the markets will go nowhere are steadily gravitating towards that blink moment. Not to be left alone, they must be hounded by peers, bankers, advisors and party conversations about how much that markets have done. The beastly tone of the market over the past few days hides the innate vulnerability of the economy. There is so much to be fixed. The markets have run ahead and celebrated the future. The party is heading towards a climax. A clear sign of that is the stunning rise of the dogs of the market – the PSU banks. When markets mistake the dogs for super cats, that’s when the seeds of future losses get sown.

Investment Strategy: Stretch your deployment horizon and play for the long haul.


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