2017 has been a great year for the stock markets with BSE Sensex on the verge of kissing the psychological 34k mark which even the most optimistic bull may not have expected after demonetization and GST. Equities have been in flavour ever since returns on fixed deposits have fallen to their lowest levels but time for caution, I suppose as we should enter the New Year with some caution. Markets have run ahead of times and most stocks are looking expensive compared to their valuations but good stocks would always command a premium and investors should stick to quality than buying stocks which are operator driven and some companies only existing on paper.
2019 is the election year and one can expect some populist measures from the government from here on but consistent growth in companies with an given track record should be singled out for investment as big money in stocks can only be made if you have an long-term horizon. Rising crude and international war like threats can act as a dampener and one should be watching global events as well. Exciting times for sure to be invested in equities but trade with caution would be the ‘mantra’ for the coming year!
(The views expressed by the author in the article are his/her own.)