Instead of buying or selling, now would be a good time to review your bank account based on your financial goals, The S&P BSE Sensex has taken another step in its long journey, reaching an all-time high of 62,272.68 points, The question is, to invest money: Are the trees valued, and should they be sold? Should I register at the library?
What changed?
The Sensex reached its previous high of 61,765 on October 18. 2021. At that time, the 12-month P/E growth rate was 29. At 62,272, the PE was 23.4. I think the higher the PE ratio, the more expensive the market will be.
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This is a low PER stock price, but investors should remember that the last 12 months of the pandemic happened a year ago. Today, the pandemic is probably behind us and there is hope for better times.
But the result of the macro in the smartphone is different. On the other hand, the economy should grow reasonably, which will benefit businesses. Meanwhile, interest rates have risen.
The Reserve Bank of India raised its policy rate by 190 basis points in May. Rising interest rates around the world have pushed up commodity prices, especially in technology. Developed countries, including the United States, are experiencing an economic crisis and are struggling to cope with the prospect of a recession.
The dollar index was at its highest from the start of 2021, reaching 114 in September 2022. Runners may rise after this buildup period if the pace is slow and the environment increases the rate. In addition to falling crude oil prices, the gloom surrounding Indian oil is growing.
While many investors are wondering what’s next for the Sensex and the Nifty 50, the experts are busy on the tree.
“The capital’s current currency is expensive compared to historical averages,” said Rajeev Thakkar, Chief Investment Officer and Managing Director of PPFAS Mutual Fund.
Shyam Sekhar, the Principal Analyst at Thought Advisors, said: “The Indian market could see some commodities losing value and some undervalued segments moving towards equity-linked investments.
In short, it will be one move per product.
Buy, Sell, or Price?
Instead of trying to buy or sell, you can browse your portfolio.
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For example, suppose you started a fixed monthly loan of Rs 5,000 on November 1, 2017, for your car expenses. He plans to buy a car worth Rs 5 lakh by November 2023. So far, he has invested Rs 3 lakh and the cost of his investment has risen to Rs 4.54 lakh. Now that we are getting closer to our target of Rs 5 crore, it makes sense to book a profit and make your money safer.
Receive the balance
Rajat Dhar, Director of the Investors Association of India, said: “The reality is that your assets will fluctuate due to inflation.
If the gap is large enough, resource allocation should be reconsidered. Money sells in the best-performing asset classes and buys in the worst-performing asset classes. Remember to pay attention to your taxes when rebalancing
It adjusts, but it doesn’t stop
When investing in different asset classes, we take asset class considerations into account.
For example, a year ago many financial planners recommended investing in short-term government bonds when interest rates rose. These plans achieved a three-year return of 5.53%. It outperformed government securities and funds, which returned 5.09% over the same period.
Now everything has changed. Most rate hikes are over. If you want to invest for at least three years, now is a good time to invest in long-term bonds through target maturities and G-Sec funds. But at the same time, be prepared for some fluctuations.
If your equity fund has underperformed in recent years, you may have overused the quality and growth strategies. We also invest in value-driven programs. Balance, especially if you plan to start a new Systematic Investment Plan (SIP).
However, this is not a reason to stop investing,” said Pankaj Matpal, founder of Optima Money Managers. Use structured transfer plans and SIPs to diversify your equity investments.
Dhar also advised me not to wait for the issue to be resolved.
“Go to SIP. If there is a crunch in December and January, make sure you have cash ready for a one-time investment,” he said.
hidden opportunity
Experts also point to the decline in the value of technology stocks, especially multinational companies, which have fallen sharply this year. Investing in a mature market like the US can offer opportunities for sophisticated investors seeking geographic diversification.
Shares of the next-generation technology company, which many investors are betting on in the second half of 2021, fell after experts pointed to the staggering valuations that prevail when many companies go public. Investors may want to invest in technology sector funds with attractive valuations.
Sekhar saw an opportunity in banking and metallurgy. The metals industry is anticipated to benefit from economies of scale, low balance sheet leverage, and multi-stage capital expenditures. Banks should act as we would expect them to.
“The issues in the power generation and supply sector are well underway and aggressive investors may consider investing in schemes to address these issues,” Matpal said.
Those who want to be safe and avoid the risk of fund managers are sticking to index funds for now, but are prepared to hold out for at least five years.