Nifty PE at it's all time High, what Long Term investors should do?

General
1

Hello there,

I’m intrested in long time investing in Stock Market,
During my study I do fundamental analysis as well as technical analysis. During this I found that Nifty PE is at it’s high (@34).

Now I want to know weather it will a good idea to start investing? Or the Market is Overvalued? And we must wait for any opportunity.

Also, I can see that whenever Market is Overvalued, there is another Asset Which are undervalued at same time, (Gold, Silver, etc), so is there any opportunity in commodity market or anywhere else, so In long term we can gain Nice returns.

Thank you!

2

How do you know that this will be the high? It can go higher.

3

The Nifty PE is @ 34, but there are plenty of stocks whose PE is below 20! So, instead of looking at NIFTY PE, look out for individual stocks, with promising fundamentals and management!

4

It’s right that it can go more higher, but do think investing at this high will be great idea?

Thank you @Gaurav2k for your views, Any stocks in your mind for this?

5

why not?

6

While doing some fundamental analysis is good before investing, you have to take some indicators with a pinch of salt, including the one I give at the end.

It takes some time for the earnings “E” part to be updated. Its lagging. Markets also factor in future earnings as well, and that may mean a very high PE - take TSLA (Tesla) for example. Would you invest in TSLA based on its extremely high PE?

I would rather base decisions on fear or greed. Have a look at the MMI https://www.tickertape.in/market-mood-index - and see if you will think differently about investing.

2 Likes
7

Hello @jpm thanks for your views on this tips.

Yes absolutely you are right, my strategy is to BE GREEDY WHEN OTHERS ARE FEARFUL AND VICE VERSA as Said by MR. BIG BULL.

Just during analysis NIFTY PE made my confidence low so…

Thank you for helping

8

@trader_dude in this website we can check nifty PE Currently PE as 32 its danger , limit for upside

theme
theme1796×1001 92.3 KB

if the pe line toch green line that time you can invest all your money in index you will get good return , now pe in red zone , yellow zone we can do SIP

9

ok, but what if the PE stays in 30-35 for the next 1 year and nifty keeps going up.

Will you keep selling your investments at this point?

Just because the PE is high , there is no guarantee that PE will mean revert. Also PE reverting to mean does not mean Nifty will crash and burn.

When considering PE you have look at the relative valuation of other countries indices.

Looking at PE standalone makes no sense.

10

@trader_dude I am a SIP investor in cash market , but my main business in the market are option trading
i don’t care where ever the market , purely i am a non-directional option trader , i am earning 50 % every year more than 7 years , whatever the profit i earn 70 % i am investing in stock and mutual fund , remaining 30 % i am reinvesting i option trading

whatever the loos in cash market portfolio when the market down i will compensate from option trading , and the profit i will average out , so i don’t worry about the market direction

2 Likes
11

Then why are you worried about PE ?

12

i am not worried , i explain to @Inventions_Creations wrongly i pointed your name sorry for that

13

Dear @TradeB2B thank you so much for your explanation and sharing your views in my topic.

As said by @trader_dude there high possibility that Index can be @35 for year, so it will not be the nice idea to skip investing

Thank you both of us.

What are the other factors important to see? Except PE

14

At last, thankyou for all of those who have contributed to this topic. I’m sure this is help some people like me.
Thank you… :grinning: