before the coronavirus, the growth rate of the nifty was between 1000-2000, and for bank nifty, it was between 1000-5000 range after the coronavirus we all know the indices bottomed out, and the recovery in 2x, I know this is because of the increased participation but it seems to fast and a lot of the institutions must have made a significant return and they will book the profits in the near future before all the inexperienced new investor’s who came into the market during this pandemic. so when the institutions start booking their profits the prices will start to fall and their will be a panic among the retail investors and they will also start to exit from their position and eventually the market starts to crash .Do you think there is a possibility for this to happen, as you run the country’s biggest brokerage I want to know your views about this
vix is less so bullish momemtum is intact
Why makes you think markets are going to crash for the same reason again and again?
I know it is easier to preach than face reality. If you are an true blue investor, you should not panic. Hence it is important you choose the stocks you wish to invest in. If possible disconnect with the price. For doing this, you should have done your asset allocation perfectly.
In the last crash, someone sold HDFC at 750 in April 2020 and someone else bought the same at the same price. Currently HDFC is around 1500 (approx). There could be some other companies who would have gone down to face value as well. Hence according to me, if you do your asset allocation and chose the stocks you wish to Invest, you should be ok. These crashes are opportunities.
These are my simple thoughts, could be wrong for others, but works fine for me.
I read one phrase - When a supermarket offers buy one get one free, people will que up, but when the same thing happens in stock market, people ignore and say, take what I own for free… (not verbatim but hope the point is made)
I don’t forsee a crash. But a secular bull market needs noticeable correction/profit booking (10-15%) to progress further. It’s like inhale-exhale.
Not until 2023 when we all goto vote