The valuation in bull market looks stretched and in bear market looks undervalued. Now in this bull market it looks like valuation are stretched. Is it a good idea to look for value in this market or we should wait till markets cool down!
4-5 months back when nifty was 8k valuations looked stretched. If you would have waited for things to cool down you would have missed oppurtinities.
If you are looking for long term perspective you can still find some good companies. For short term it would be better to trade on technicals
Finally it comes down to individual preference. Either you can make bad decision if you enter market and things don't turn out your way or you can make indecision and stay away so that you will not definately make loss.
Choice is your
Methinks the market has run about 18 months ahead of earnings … either earnings have to catch up double quick, or the market has to take a breather, or a general correction has to happen.
That being said, i too agree that there are stocks that are still under-priced considering the state of the market.
My feeling is that if a stock we hold is way overpriced we should book profits, but if a little overpriced, it might not make sense to sell & look to cover back, as it is by no means certain that every stock will fall in a correction.
Just my 2 paise worth.
)- Bosco
If you are holding quality businesses form lower levels and have 5+ years view, why should you worry about a 20% correction ? Its one of the most common mistakes investors make, selling with the hope of buying it back at a lower process. If the timing is not spot on, you can end up losing the stock or buy it at a higher price.