Markets are too high, I will wait for them to cool down before I invest. Nifty broke 10,000 and Sensex is at 32,000, is it too high? We’re in bubble territory for sure. Markets are in an overdrive—this ends badly. Markets are looking ahead and pricing in the structural reform the government is doing. Goods and services tax (GST) will cause markets to drop in the next 2 months—we’re just a few days away from a crash. Market is pricing in the long-term benefits of more taxpayers, less black money and better compliance due to GST.
Listen to the voices about the market and you’d imagine people are talking about two very different things. There are two voices that we hear today—one believes that we are already in a stock market bubble. The other believes that small corrections will happen, but we are in a long-term bull run.
Is this a good time to invest? If I’d got a lakh each time I was asked this question, I’d buy a Greek island. Actually, not Greece, I’d rather be home. I’d have bought an…ok, I actually don’t want to buy any property. So, let’s just leave it at this—I’d be darn rich. But I’m digressing. Let’s get back to all-time-highs of the market and good time to invest questions. You could not have missed the all-time-high stories last week, and depending on your investment proclivity, you’d fall into one of two groups of people. The relatively larger group that shook its head and said: we missed it again and now it is too high to get in. The smaller group that let out a sigh of relief after almost five years of flat returns to look at an average annual return of anything between 12% and 25%. (If your funds show lower than that—do check your selection of funds.)