Overview
We have been writing about markets and its understanding in very simple language. This may be used as guidance for fresh investment and also help in staying within your stated asset allocation with a very long-term view in mind. Many times, social media and many news channels tend to cloud your long-term views and judgement with short term strategies. However, we believe that one should stay invested as long as possible unless there is a fundamental change in the economy of the market that you are invested in.
It is also observed that many times previous highs of the markets act like a sky ceiling but one tends to forget the fact that its not a permanent number – we are in fact talking about the Nifty and or Sensex which is just 50 or 30 stocks in the market.
Additionally, the market may become cautious or rich in terms of valuation but not necessarily get sold off always when it touches old highs. Read more.