Group A constitute approx 62 % of portfolio.
Group B constitute approx 35 % of portfolio.
Group C constitute approx 3% of portfolio.
Sectorwise i have exposure in…
IT stocks approx 30%.
BFSI. 20 %.
Pharma 17%.
Speciality chemical 14%.
Presently I have approx 59% gain.
Investment horizon is 20 yr plus.
I believe there is only one rule in stock market…There is no rule in stock market.
Buy right, sit tight.
If i could achieve 20% plus CAGR, my investment journey will be successful. I m going to achieve it easily.
I am presently in Microinvestment phase.
If i could find any stock having 100 times growth potential, will add in my portfolio.
Dear respected members
I m well aware that this is a place of fundamental discussion only.
So no speculative talk to be done here.
But hopefully i may talk about my portfolio.
i believe in long term investment only.
i am firm believer of buy n forget strategy.
Some of issue are going to hurt market badly as i m coming through deep search…
Market valuation at quite high.
Rising inflation at lifetime high.
China real state market about to collapse.
US tech market bubble.
Economy collapse in Srilanka, turky etc…some more country like argentina, Iraq, libya, Brazil.
Cryptocurrency crash.
Raining of IPO.
LIC IPO will suck large liquidity.
Geopolitical situation in world like Russia Ukraine china taiwan India.
Civil war like condition in Gulf countries.
End of pandemic with pandemic induced slowdown will result in process of rebalancing.
Oil reserve shortage and rising oil prices.
Rising rate of unemployment in China, unites state, India.
10 trillion dollars currency printed and pumped in equity market. Fed policy to taper inflation …USA.
Low forecost for GDP growth in Europeon country.
I am observing a huge market correction even bigger than 2008, 2020.
Upto 10-15% correction is well acceptable for long term investors, but >20% correction is not acceptable.
What to do?
Should we try to protect our capital?
Or wait for opportunity?
Dear members
With above reasons i have taken my measures to protect my capital.
Let’s see what happens.
Will restructure my portfolio after storm over.
It is just so hard to time the market, No one anticipated market to go up so much after corona crash but then it market is up like crazy. My mantra is simple buy great companies at reasonable prices and see through crash if any. If you have bought great company at reasonable price it should not go down too much to start with and then it should recover quickly when market is back.
Market can crash 50% any time which is given so we all should be ready
@DocDhriru, As other members have told, it is hard to time the market. Many a times, sitting with cash expecting a market downfall may lead to opportunity cost. In my experience, good large cap companies with a MOAT and sound promoters always returns back to the median quickly in the event of a crash. I have learned to keep at least 5% cash always to deploy when such events occur. My 2 cents.
@keeyes thanks for suggestions. But i dont agree 5% cash. It should be >20% in present scenario.
It is difficult for anybody to sell long tem holding on speculations only.
In 2020 crash i anticipated at every fall. I even bough stocks between 15-30 march.
I was 70-80% gain side. I have deep insite for big market fall. Even process have started.
In current situation i can’t afford to see my stock going down 50-60% as i m having most of investment in mid/small cap.
When free fall happens, no fundamental or technical parameter works.
So i have bit protected my capital(exited 95% holding).
I m waiting storm to settle, then will invest for long term only.
.
In every 1-2 years you will face such scenario where you will anticipate big fall , so how will you remain invested for long term as you mentioned long term in last line. Being invested for long term is not easy job. We think long term but we sell everything (like you have done) .
@itsnitin Thanks for your suggestions.
I m not talking about bear phase happens every 2-3 yr.
I m about talking DEEP correction which happened every 10 yr…like 1991, 2000, 2008…and 2020.
Actually present scenario is ongoing phase of deep correction happen 2 yr back…with measures taken things were temporarily revived. Thanks to Fed for market rally.
Now things has settled. Covid causes economy slowdown. So process of rebalancing has to be happen to equilibrate slowdown… inflation…FOMO etc.
Whatever we saw 17 Jan and 7 Feb were just a forecost of coming deep correction.
Lot of new investor are there in market. I have mentioned the triggers in previous massage. Once breakdown will start, nobody will stay.
I was very much sure that my portfolio is going to see downside of 40-50% from its peak.
I have relatively small size portfolio. So step were taken in advance to protect capital.
I may be wrong in my perception.
Let’s wait what happens.
Disclaimer: i m a learning invester. Not a financial expert.
There was a downside potential of 50-60% and upside of potential of 200% on reentry at same amount of investment in case of major crash happen.
So i sold all my holdings in first week February.
With now a day market conditions i think my decision was right.
