Optimizing Investment Strategies Amid Record Highs in Equity Markets By Mr.Deepak Gagrani, Madhuban Finvest
![](https://portfolio.investmentguruindia.com/uploads/news/Broker _19.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below Quick view on Record high Equity market By Mr.Deepak Gagrani,Founder - Madhuban Finvest
Optimizing Investment Strategies Amid Record Highs in Equity Markets
Amidst a remarkable short-term rally across various asset classes, including equities and precious metals, it's crucial for us as investors to prioritize managing our emotional quotient (EQ) over fixating on intelligence quotient (IQ). We've been fielding numerous inquiries reflecting mixed emotions—optimism, enthusiasm, and some concern.
Here's our current approach to investments, with some key points to be considered by investors:
1. Short-Term rally, Long Term Consolidation:
Positive sentiments from global and local state election results, coupled with a steady liquidity flow and the absence of adverse news, have led to a spectacular rally in Indian equities over the past 3-4 weeks. Despite this surge, it's essential to note that the point-to-point 2-year Nifty returns until Oct 2023 are less than 5% per annum.
2. Broader Markets Take the Lead:
Broader markets have outperformed frontline stocks, with several large-cap stocks still below their all-time highs. We anticipate an overall rotation, with large caps likely to outperform in the coming period and will consider any further aggressive moves in midcap/smallcap segments as an opportunity to secure profits.
3. History Repeats:
The current scenario mirrors that of October 2021. We will refrain from any fresh lumpsum equity investments and would exercise caution against overly positive narratives surrounding the stock markets. While we hold a bullish outlook for the Indian economy and markets over the next 3-5 years, we approach the short run with caution. Any fresh money to be deployed should be staggered across different periods.
4. Equity Exposure Requires Strategic Review:
Further, it's essential to recognize that the recent market rally, characterized by its rapid pace, shouldn't automatically prompt a reduction in overall equity exposure. While strategic rebalancing towards areas with more favorable risk-reward profiles is prudent, trimming overall existing exposure to equities should be a deliberate decision tied to an investor's proximity to achieving their financial objectives and a desire to mitigate short-term volatility.
5. Precious Metals as a Hedge:
Diversifying our investment strategy, we've observed a notable upward movement in precious metals, particularly gold and silver, following a prolonged consolidation period. Recognizing the current climate of global uncertainty, we maintain our stance as buyers during any market dips, viewing precious metals as a reliable hedge against potential uncertainties on the global stage
Above views are of the author and not of the website kindly read disclaimer
![](https://portfolio.investmentguruindia.com/uploads/news/Clean Science and Technology.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Somany logo.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/startup.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Srinivas Narayanan.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Mongolia.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/nitingadkari37.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/jul03v68_wcHr0zT.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/IT Sector03.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Bharti Airtel Ltd.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/uploads/news/Stock bull.jpg)
Sensex touches 80,000 for first time, Nifty at all-time high
![Market Wrap Up by Shrikant Chouhan, Head Equity Research, Kotak Securities Ltd](https://portfolio.investmentguruindia.com/uploads/news/Shrikant Chouhan.jpg)
![Daily Market Analysis : Markets edged higher, gaining over half a percent, driven by favorable cues Says Mr. Ajit Mishra, Religare Broking Ltd](https://portfolio.investmentguruindia.com/uploads/news/Ajit Mishra.jpg)
![Quote on Kotak Mutual Funds for Sensex at 80000 by Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Co. Ltd](https://portfolio.investmentguruindia.com/uploads/news/Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Co. Ltd.jpg)
More News
![](https://portfolio.investmentguruindia.com//uploads/news/Ajit Mishra.jpg)
Daily Market Analysis : Nifty has finally crossed the immediate hurdle of short-term moving ...
![Daily Market Commentary : Nifty scaled to new highs in today`s session to close with gains of 33 points at 20103 levels Says Mr. Siddhartha Khemka, Motilal Oswal](https://portfolio.investmentguruindia.com/uploads/news/5761d240483db7bf8cb771769286847e.jpg)
![Mid-market comment by Mr Shrey Jain, Founder and CEO SAS Online - India's Deep Discount Broker](https://portfolio.investmentguruindia.com/uploads/news/shrey jain.jpg)
![Daily Market Commentary : Domestic equities were lacklustre ahead US Fed`s decision late today says Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd](https://portfolio.investmentguruindia.com/uploads/news/Broker _23.jpg)