Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

Chart: Nifty Aggregate Revenues and Earnings Both Dip 2% Year on Year

Nifty aggregate earnings (added up) are now DOWN 2.25% from the June quarter last year. This, combined with the Nifty just 5% from all-time highs is, one might think, a little effervescent. In more understandable English terms: We are in a bubble.

image

But Markets, they can go a long way before they pop. So don’t rush to sell, unless you are scared of the volatility. But if you’re scared of volatility why are you in the markets?

The thing I do is to keep a stop loss below the current market price. 15-20% below. And who knows where markets could go – if they go up another 20% and drop, I might have made a lot more. But the understanding that this is not really driven by earnings is necessary to know when the stop loss hits and the urge is to wait because of the glorious India story.

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial