When the Nifty runs up 6.57% in the first month of a financial year, the mood of the market would usually be upbeat. But that hardly seems the case with our market now. We see most Investors feeling a bit left out, not identifying with the index move and looking lost. This applies as much to professional managers who have the month-to-month challenge of beating their benchmark. Everyone is simply wondering how long this party would last. Clearly, more people expect things to get worse before they get better.
While the jury is very much out on that, investors must not fail to capitalise on this unexpected market buoyancy. This is an opportunity to do a lot. For starters, investors big and small, must identify where they are stuck with the ‘Buy At Any Price’ philosophy. It could be individual stocks, mutual fund schemes or PMS products. This rally is an opportunity to correct your mistake of buying these in the first place. A godsend opportunity to exit the stocks, mutual funds or PMS products that have shown rashness in investing and punished you for their rashness. This rally is not going to help such ideas regain their past glory. The best case for an investor is to salvage his own lost glory when the market lends him a chance.
As the economy turns, takes a different direction, overcomes inflation, and fights ElNino, our market leadership will see a remarkable change. Make sure you are adequately participating in that change. Invest only where valuations are supporting buying. Be more disciplined now than you ever were in the last three years. Ensure your portfolio is future-facing and not looking at the rearview mirror into COVID investing. Safe journeying with equities is not an option. It is your urgent need.