Transcript of Podcast
The Sensex touched its highest level of 30,000 this week before falling marginally on profit booking while the Nifty touched its highest level of 9265 before falling marginally. Record high levels of the Sensex and Nifty seem daunting and many of you may be uncertain on what to do with your savings in this market.
The US air strikes on Syria have added geo political concerns on the markets, which are at record high levels. Should you invest on expectations of further rise in Sensex and Nifty, wait to invest, book profits or stay out of equities now?
The answer would depend on you and not really on the market. If you can provide yourself answers that can go in favour of markets rising further, then you should invest on expectations of the markets rising further, irrespective of geo political concerns. If you cannot find answers that go in favour of markets but find answers that go against markets, then you should not invest and should stay out of equities now. You can always seek outside help, our presentation on Sensex at 40k in 2019 for our subscribers can help you find the factors that you seek to invest or not invest in equities. This presentation is for paid subscribers and if you are not a paid subscriber, you can subscribe for just Rs 2000* for 2 years, which will not only give you the factors that you need for taking an investment decision but also a low cost MF portfolio based on your risk profile, which will help you optimize returns on your savings.
Should you wait to see how the US air strikes on Syria play out on the market before investing ? Markets have time and again overridden geo political issues as seen by the fact that global indices from US to Europe and India are trading at record highs or close to record highs. Syria conflict, ISIS, Ukraine, Terrorism, North Korea have been around for a while and markets have learnt to cross these concerns. You can always stagger your investments in times of conflicts but its better to invest rather than wait for markets to fall in times of geo political issues unless its expected to escalate into a long drawn out war that involves the rest of the world.
Should you book profits? Question you need to ask yourself is that if you book profits and markets move higher, will you have the conviction to re-enter the markets at higher levels. The cost of booking profits is an insurance against markets coming off and as long as you are willing to pay that premium, you can book profits if it will give you peace of mind especially when there are concerns at record high levels of markets.
Should you stay invested? If you are able to provide yourself answers why markets can go higher and if you are able to withstand volatility in your portfolio, you should stay invested.
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