Money manager Samir Arora believes that the equity rally in last few years, whether in India or US, has not yet been 'blowout' for investors to worry about a bubble building up, adding that he has been bullish on equities as well as gold.
"We have not had a blowout rally like in previous bull runs. This period has been very measured because there has been is supply. People take it as a negative, but there supply has ensured the overall market has remained in check," said Samir Arora during a conversation on CNBC-TV18 sharing his outlook for 2025.
The stock market valuations have not been 'wildly out of line', said the veteran investor, adding that for Indian stocks, the Nifty 500's three-year returns have been around 15% per annum, which is 'more of less' in line with our longer term historical averages. Samir Arora added that there is no playbook for stock market correction to play out, contesting the view that a correction in one stroke results in a good market to invest in. "May be it corrects gradually, or goes up first, before it comes down."
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"To say that next year we need to be bearish, or sitting on cash, or waiting for a crash, is not obvious and not needed," said Samir Arora.
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In this market, Samir Arora has stayed with financials, and turned bullish on IT after June 2024. He is also bullish on food delivery and platform companies but stayed away from EMS companies. Samir Arora also said he sold shares of Titan nearly a year ago.
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Samir Arora added that he remains bullish on US equities, where the bull run has been concentrated in 10-15 big tech stocks, all of which have been cash-rich, beneficiaries of AI, and not concept stocks. These stocks have valuations (P/E) in 20-30s, and do not look deeply over-valued.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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