NIFTY at 13,000!! What to do?

What to do? Nifty is at All-Time High – Around 13000.

Investing is more of a mind game than an analysis game.

Nobody can predict where the market will go in the short term (less than 1 year).

In the short term, more than 50% of movement happens due to noise. But over 5-10 years, these noises average out to zero. You get the real flavor of the fundamental growth of the stock and the economy.

In the long term, two favorable things happened due to COVID

1. COST REDUCTION: Organisations realized their potential and abilities to cut costs. They will create a long-term strategy around it, which will lead to higher profit margins.

2. CONSOLIDATION IN THE INDUSTRY: During any crisis, a large debt-free organization gets a cost advantage in borrowing. They utilize the opportunity for expansion or acquisition.

In the short term, one observation:

1. HIGH GLOBAL LIQUIDITY: Central banks in the US and other developed countries has done monetary easing and kept interest rate low. There has been a significant inflow in Indian Equity from Foreign Institutional Investor (FII).

COVID can still bring many surprises, so be patient if you have invested your money.

For Long Term, it is still a good time to enter.