Is it better to adopt value investing in current markets?
Value investing gives better risk reward for very long term investors
Avinash Gorakshakar, Director Research at Profitmart Securities in an edition of Market Masterclass spoke about value investing and explained how it may be a better investing strategy for long term investors.
Talking about the current market scenario, Gorakshakar said that macro numbers are key to track to understand the market sentiment.
“With the crude oil prices rising and a sharp surge in bond yields, one may want to track the impact on inflation as that will ultimately reflect in Q1Fy22 earnings. All eyes will now also be on the RBI to understand if there is any spike in inflation and whether the central bank may want to alter the course of lower interest rates which again may have an impact on the rate sensitive sectors of the economy”
“There’s also an impact on the currency which ultimately will be key track as well,” he added.
On the impact of the US stimulus package, the markets have cheered that so far but what is the impact of that on demand is something the markets are keenly watching.
In such a market scenario, is it then better for investors to adopt value investing?
Avinash Gorakshakar believes for very long term investors the risk reward is better in value investing as a strategy.
He also goes on to explain what is the key difference between value investing and growth strategy.
Tune in to watch the interaction to understand if you should now focus on value buying.
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