Trump tried to scare us with a ‘dog’s bark’, replied North Korea on US President Donald Trump’s remark of destroying N Korea. But the stock markets all over the world including India are not amused as most indices have shown slump over possible nuclear threat glooming over the global horizon. Barking dogs seldom bite but smart investors don’t want to take any chances at a time when stock markets have rallied substantially. Nuclear threat has offered the markets the much needed reason to cool down which is a healthy sign for the health of the markets for the long term. Investors should avoid ‘fly-by-night’ companies as most only exist on paper and the government too along with regulators should crack down on them so that retail investors are not fooled by daily upper circuits on such stocks. US-North Korea issue seems to have become one of ego for both nations which we all know would fizzle out with the passing of time and a few sizzles but the downfall in stocks would be a great buying opportunity of many quality stocks which are expensive at today’s valuations!
(The views expressed by the author in the article are his/her own.)