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Markets Close at Highs, But Are We Seeing Euphoria Yet?

Stock markets close at an all time high, and you can see the euphoria build up. People are beginning to talk stocks again at parties. You can’t lose after buying anything, even Suzlon. You find people praising the stock story once again, this time they know it’s different because it’s Modi or Rajan or ECB or some such massively positive thing.

It is precisely at these times that we need to stay focussed and disciplined. The rules of thumb are:

Do not borrow money . . .

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