@AlliesFin
Someone needs to do some research as to how this Monday comes back so soon?
A thought on investing.
If you are truly bullish on India and want to create Alpha, you MUST stick to Midcap and Smallcaps.
The 'Size Anomaly' + 8% GDP growth factor.
So basically think for yourself, are you long term bullish on India where you think that the Indian GDP will grow 7-8% for the next 5-10 years?
If yes, then its just WRONG to buy largecap defensives.
Because, if the GDP fires at 7-8%, then there will be ample opportunity for small sized players to grow and due to their small profit base, their growth will be exceptional in some cases.
Hence, if we are right on the assumption that Indian GDP will grow at 7-8%, then buying midcap and smallcaps will result in 'strong earnings growth + rerating as size grows'.
I am sure that a lot of investors do NOT realize this but when they buy a stock trading at 50-80x P/E with 12-13% growth, they are basically 'Bearish' on India.Because, if the Indian GDP grew just 3-4%, then opportunities will be limited for smaller sized companies and only the very large players will gain market share.
('Big will become bigger' - something which happened in 2018-19 briefly).
Conclusion:Bullish on India and want to make Alpha - Buy midcap and smallcaps which will give growth + rerating.Bearish on India and want to make Alpha - Buy very largecap defensive.
About timing your market entry. Well, just DON'T do this.The FED first said that inflation is transitory, then they adamantly stuck to their guidance like a newbie trader which holds to his loss making position in fear of making loss.
The FED then became inflation hawks all of a sudden and now are busy raising interest rates while this inflation clearly is caused by Supply issues and nothing else.
Basically, if the sophisticated FED cannot predict inflation over 1-2 year period and neither should you bother about doing the same.
As we know, India will sell more Burgers every year for the next 20 years. And I am pretty sure it will be the same for Fans, Computers, UPI transactions etc.
Telegram.me/AlliesFin
India is a MASSIVE opportunity.
By: via @AlliesFin Serve Stock Market
