Decoding different types of stock market investors- frog, pig, vulture, and ape

In a recent lighthearted analysis, analysts at Kotak Institutional Equities categorised stock market investors into four main groups - frog, pig, vulture, and an ape

In a recent lighthearted analysis, analysts at Kotak Institutional Equities categorised stock market investors into four main groups - frog, pig, vulture, and an ape. Describing the Indian stock market as a 'jungle', they emphasised that it is a place where egos do not belong, and where the jungle itself reigns as the ultimate king.

Starting with the first investor type - a 'frog' - Kotak analysts said that they are having a swell time in the current market scenario, wherein they have discovered a magical pond (the stock market) that keeps replenishing itself.

However, the pond seems to have overheated of late (indicating elevated market valuations), represented by bubbles in water. In this scenario, frogs (investors) have grown oblivious to the overheated pond as their bodies  have adjusted to the rising temperatures and they remain confident that the pond will naturally cool down.

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Furthermore, a second type of investor - 'pig', said Kotak analysts, are having a great time too. While they are smug about the fact that the water in the pond is reaching higher and higher levels (all those bubbles in the water), but they remain ignorant about the fact that the temperature of the water has reached extremely high levels.

"In fact, the pond’s water could be at risk of turning into steam and disappearing altogether," analysts cautioned.

But, 'pigs' remain largely ignorant about the rules of jungle and are massively confident about their ability to siphon off the water from the pool at the right time before other animals and their fellow pigs do the same, added analysts.

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In contrast, a third type of investor - 'vultures', which could be representing foreign investors, are disappointed. They returned to this jungle (Indian market) expecting a feast but have found slim pickings, unlike the bountiful opportunities they once enjoyed elsewhere (possibly the Chinese market). Some vultures have reluctantly returned to the Indian jungle, said analysts.

Finally, the fourth type of stock market investor - an 'ape' who observe the market from a distance, occasionally dropping ripe fruits to the jungle floor. This could be unregulated stock market investors.

Analysts believe that their actions are largely ignored by other animals, prompting the apes to vie for relevance with increased chatter and unconventional behavior, resembling a form of chaotic "monkey business."

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