All investors want our respective portfolios to do well and give stable outperforming returns however we all know that most portfolios (almost 98% under perform the Nifty) so as we stand today there are some massive opportunities available in equities which offer safe, secure and sure shot returns over time. Let us first understand where we stand today.
As we predicted and wrote openly that at 16100 it was time to buy selectively and that played out perfectly. What we booked at 18500 we bought back at around 16100 in portfolio and we continue to remain 100% invested.
Now, all our leading indicators are suggesting that during the coming results season there will be some accidents in some selected sectors so if you hold longs in these 2 sectors (I have given detailed update to my clients on this) then for the near term you will not be able to generate any returns in your portfolio. Look to shift to stocks where there is earnings growth viability, visibility and excellent managements in place to mitigate the on going corrective cycle that has been playing out since the past few months.
At the same time there are few stocks that have continued to gain market share, margins are fairly intact, growth visibility is superb so if you do invest in such stocks( list given to our clients) then we do not see any problems in making great returns in the markets regardless of where the Nifty goes. When I say great returns making 50% upside from current levels should not be a problem.
Bottom line be positioned in the right stocks and make sure shot money over time however if you have wrong stocks (I do know portfolios are hit but there will be more pain if you are in wrong set of stocks especially in certain sectors)