August 8, 2019It is now apparent that there is a slowdown in the Indian economy and the stock market.
While there are many reasons attributed to this market movement, one thing we should remember is thatnot many people saw this coming. Just a few months back, the India growth story was taken for granted, and no price seemed too high. Today the mood is on the other end.
I am now convinced that money is lost in bull markets, where we pay up front for growth that may never happen. When stocks are attached to narratives - India growth, retail, monsoon, etc - it is easy to pay. It makes us more gullible. However, there is a set of narratives peddled to make the fear easier to believe.
We read many times to buy when everyone is fearful. Maybe this is the season to buy. We will see in a few years how it pans out.