Markets on a high! Should you invest now or wait!

Markets on a high! Should you invest now or wait! post thumbnail image

Markets have moved more than 21% in last 45 days from its lows and most retailers have missed the rally . The institutional buying in the large caps and concentration in certain nifty stocks have fueled the nifty returns .

A basic thing to understand that NIFTY is representation of 50 top stocks and we have to look at sectoral growth and other broader market indices before entering the market.

Institutional investors will always pump money in falling markets but that doesn’t mean they will commit the capital for longer time , and one of the most consistent behavior historically of these institutions are that they sell off with very high velocity , trapping other retailers at higher prices.

When these players flee the retailers start buying anticipating new opportunities . Retailers get stuck at higher levels for a longer time.

So what you got to do now ?

My suggestion would be to sit on the fence and park your money in short term bank deposits or Liquid funds . Wait for the opportunity for real income / earnings to reflect on the stock market.

This Stock market Growth is fueled by easy money and sentiments , but when real income / earnings will come in , the prices will adjust.

Hold , Breathe and Chill!

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