30000 for the sensex is an intoxicating number. It would make one feel heady if we think of where we stood 18 months ago. But, this is no time to soak in the moment. This is a time to think of our investment response to the situation. Should we simply stay away? Or, should we look at pockets within the markets where there is undiscovered value. Fortunately, the markets are uniformly expensive. The concentration of capital in select stocks is no new phenomenon to Indian equity. There exist enough themes to bet upon for the long term that will deliver big over time. Contrarian investing is always possible if one has a sharp eye for opportunity. This is a phase that will separate the informed investor from the herd. It is a time to stand apart and prove one’s mettle as an investor.
Don’t be afraid to go out on a limb. That’s where the fruit is. – H. Jackson Browne
