In the month of March 2020 when markets were down I sent a couple of mails and mentioned to stay the course, not to panic and if possible utilize the opportunity depending on your overall asset allocation.

This time I would like to bring to your notice that many people are taking advantage of euphoric markets through various social media platforms recommending investment into stocks, mutual funds, Crypto’s etc. Operators are utilizing the social media platforms to create interest in certain stocks. It is an old game of pump and dump. So beware of such things and do not fall for such tips.

In a rising market equities should become less attractive from a valuation standpoint. Rationally yes. Behaviourally no. Even if one is bullish on the potential of the Indian economy and the sustainability of this bull market there is still need for caution.

Optimism must always be tempered with caution, not turbo charged with greed.

The investment objective should not be dictated by the market movements or attractiveness of past returns of a particular asset class, rather it should be based on your needs, requirements, while keeping in mind the pre-determined asset allocation.

In the stock markets, a small percentage of people end up being successful in the long run, whereas the majority of people, in spite of being successful in the short run, end up losers in the long run. – Late Parag Parikh.