Some argue that betting against equities makes little sense while interest rates are low
Moderating return expectations will help us eliminate our need to invest in ways we don’t understand or don’t have an expertise
There is going to be U-shaped recovery. The depth and pace of it will be difficult to predict, said ace investor Rakesh Jhunjhunwala. There is no need to assume that Rajan is the only man who can continue policy initiatives and the RBI is an institution, he said.
Damani said retail investors should not try to time the market, and would be better off focusing on good businesses. Bull markets always climb a wall of worry and right now the market is looking ahead to the election cycle and a new administration; that is why it is powering up.
Bull markets in Japan tend not to last long. Over the past two decades, in an environment of low growth and persistent deflation, the best strategy for globally-minded investors has been to get in early and then get out again, once the index has risen about 20 per cent.
Independent market analyst Girish Pai explains, in his analysis on CNBC-TV18, that a boost in the growth in earnings was vital for a bull market as proved by the bull markets in 2003-2007.