Markets are creating history by hitting new lifetime highs every day so how should investors tread in such times? Is profit booking the right strategy to adopt when the markets seem to have run ahead of fundamentals or can you still adopt a buy on dips strategy? Atul Bhole, Senior Vice President, Investments, DSP Investment Managers shared insights on what’s the best approach for investors in markets at the current juncture.
“Investors need to be cautious now as some pockets of markets are facing pressures. While growth is coming back, inflation is moderate and we have come out of the severe second wave, there are hopes that the markets will do well going forward, however in the near term there may be range-bound trade or bouts of volatility”, he said.
As for advice to investors entering the markets at these record highs, he suggests that decisions cannot be made looking at the past. The key is to stay invested at all levels of markets and stick to quality for the long term.
“Record retail participation, increased IPO activity and over-valuation in small and midcap sectors are signs of markets peaking out, but one can still look for value in some large-caps or even midcaps to look for higher returns”, he added.
