Reflections on the market - from analysts, fund managers

Published On: December 16, 2011 | Duration: 13 min, 34 sec

Pathik Gandotra from IDFC Securities says investor sentiment is currently fearful but this is the right time to pick quality stocks available at attractive valuations

Excellent! Interesting and very candid discussion! His views on how to think about the Eurozone situation, other global factors and consequences for India…is in line with discussions in our circles.

Hearing him, I got a bit of help - on how to refine my investing strategies in 2012. For example, the last bit - There are 2 bits for the Government to do. The Government is doing nothing on the Reforms bit - the enabler bit, but it is doing its bit on the Spending…and Election spending will boost Consumption!

A nice summary of the current situation by Ruchir Sharma.

Key point that stood out for me.

“I really think that rather looking at levels we have to look at signposts in terms of what will sort of change this trend because looking at levels even valuations are very poor timing tools. We can keep looking at valuations and say this is cheap etc but what we really need are some signposts in terms of what will turn this trend around. For me, the most important signpost will be that we cannot have a bull market begin where every time the index in India goes up by 5-10% because of global factors; commodity prices led by oil also go up by 5-10% that becomes self defeating. We need that psychology to break for us to get a sustainable advance. Until then itâs hard to sort of get out of this bear market regime.”

Its so contradictory(and hence funny) that we dream of multibaggers and also tempted to sell stocks when they just double :slight_smile: