Since the last couple of days you may be reading,watching through various media platforms about Indian Stock Markets are at all time high etc. Hence i would like to bring the below mentioned updates to you all in order to make informed decisions.

Market movements should not dictate your planning for investments. Follow asset allocation, time horizon of investment, your current life stage, more importantly consider your goals and responsibilities and invest accordingly in suitable assets like debt and equity.

As Benjamin Graham said — ‘In the short run, the market is a voting machine but in the long run, it is a weighing machine.’ In the short run market moves on by sentiments. However in the long run it is the growth in earnings which make or break the markets. Remember there is no such as lifetime high or low. Since more than three decades of Indian stock market history and in your own investing journey, you can recall many such highs and lows.

As markets moving higher many NFO’s will come with different themes and names. Do not invest. The reason being In your existing investment universe of funds you will get that benefit. Stay away from such offers.

Current market valuations are no more cheap. Markets are trading above long term averages. To sustain the current valuations it needed the much awaited rebound in earnings. However locally with the effects of demonetization and roll of GST, dealing with bank NPA’s one need to see how they pan out in next couple of quarters apart from global environment. However any correction in the market can be seen as an opportunity to invest based on your individual asset allocation with a long term view.

As mentioned earlier liquidity plays an important role in either side of market movements. Globally all markets are participating in the rally. Foreign investors are buying aggressively. In the month of Feb and in the ongoing month they bought more than 20000 crores, which is moving up the market.

Do let me know in case of any further information.

“It takes character to sit with all that cash and to do nothing. I didn’t get top where I am by going after mediocre opportunities.”-Charile Munger