Hello Friends,
After the new highs of market in month of May 2023, its obvious to feel jittery about whether the market will continue the momentum? and in all probable scenario, we need to visit our investment plan.
So let me start with what we had planned in our previous year (2020,2021,2022) and where we are in our current year (2023) of investment plan.
Out of three cases (bear, bull and sideways) we proposed. After a tumultuous 2022, we are clearly tapping into bull scenario as evident from this nifty chart.
So as per plan, we would still be fully (80%+) invested. And I hope your actual capital would have appreciated quiet well during this period.
Now at this juncture, it’s pretty important to revisit our portfolios and make some adjustments. You may wonder why? so let’s delve into it first.
Why to revisit portfolio?
Clean portfolio, during course of last few years, you would have gathered some non performing stocks, whose fundamentals or business would have changed. Getting rid of them is best at this juncture.
Every bull run has new leaders, like 2020 bull run had IT as the leader of pack. Rebalancing portfolio in favour of leader helps you optimize your returns.
Booking some gains in your previous stocks and re-deploying them in new leaders are best done at this point.
Also checking the readiness of your existing portfolio stocks makes much sense now then later. Some might have got temporary business impact during this period, add more capital in them, is also better at this place.
But why now?
To understand that let’s visit some of the market moving tracker.
The GDP growth (FY23) forecast has jumped to 7.2%, that’s the first green shoot.
The return of FIIs, after a gap of 12 months, the FII’s are net positive again.
The possible end of rate hike cycle. (at least that’s what market is expecting imo)
These are some of the factors that can redirect massive money in market in near future. However the exact opposite may also happen. But probability is more inclined toward a better market growth.
So now is the time? what say!
If yes, then how?
if this is the time to be in market, then how to find the next leaders of stock market? that’s the obvious question we delve into every time. Revisit our post amid the mayhem of 2020 and how we identified leaders then
The process remains more or less same, but the only problem is that you wont find such names with cheap valuation now. It’s highly unlikely that any market leader is selling cheap today. Sticking with them is still a better proposition if you can’t find new one.
Then what should be the better plan?
The only thing I do, when I don’t have any market leaders in my portfolio is to study and find new market leaders. That’s simple. There is no substitute of hard work.
So apart from already published #Stock Discussion, I will publish some more discussions this month. Hopefully we can find some hidden leaders among them.
Also, if you have any potential stock in your mind, which can be discussed on our blog in detail, you are welcome to put them in comment section.
Let’s hope, if the party continues, we are able to make it count better.