Thought for the day
“I see that the fashion wears out more apparel than the
man.”
—William Shakespeare (English, 1564-1616)
Word for the day
Prelusive (adj)
Introductory
(Source: Dictionary.com)
Teaser for the day
What are key issues is 2014 election?
·
Narendra Modi’s marital status
·
Manmohan Singh’s reticence
·
Azam Khan’s defiance
·
Arvind Kejriwal’s humiliation
·
Rahul Gandhi’s ineffectiveness
·
All of the above
·
None of the above
Jump out of steady
boat to take the beta bait or stay put?
Overwhelming outperformance of high beta midcap and small cap
stocks in past couple of months has made many market participants fidgety;
especially those who have been excessively skeptic about the political and
economic environment of the country. Though most household investors have
remained nonchalant by the market exuberance, traders certainly appear restless
and willing to take the plunge.
The question is should traders and investors jump out of the
good quality (though expensive) defensive large caps to participate in ongoing
beta rally for some accelerated gains or just stay put?
The search for an answer took me a decade back. In past one
decade the market has seen four clear instances of material midcap
outperformance. All instances were followed by a massive correction in markets.
Keeping this in view, in coming days we shall discuss what
should be the strategy under the circumstances.
(Source: InvesTrekk, Falcon)
Readers can send their views, comments, criticism to the author at vijaygaba.investrekk@gmail.com
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