One can’t do what everybody else does and hope to garner great successes in equity investing. Yet, investors unfailingly do just that. The obsessive hunt for small cap, microcap and Midcap ideas have unleashed a valuation bubble in 2015 that seemed invincible. Most seasoned investors were dismayed at the investor behaviour and yet could not understand how things were holding up. Typically the markets only prove one thing time and again. They stay irrational longer than we can remain patient and stay liquid. Exactly when most people gave up and deployed cash in whatever ideas they thought were relatively attractive, the markets cracked. Now, we enter a phase where valuations will trend towards a lower range in the coming months. Now is the time an investor must show the right mix of faith, conviction and patience. An investor’s application skills and investment temperament are now on test. This is the time to do things differently. Investing boldly in times of heightened fear will make all the difference to one’s investing. That time is now.
You can’t do the same things others do and expect to outperform.