Are the next 6 months good for a pre-election, pre-rate cut rally? Abhay Agarwal answers

economictimes.indiatimes.com:

Abhay Agarwal, Founder & Fund Manager, Piper Serica, says “we are seeing a lot of investors both in India and internationally under allocated on the risk assets, They are actually “desperately” looking to put on positions, get to a fair level of allocations. That is why we are seeing in the markets that anybody who did the hard work, stayed invested, used the downturn in the market to deploy capital, is finally getting rewarded. So it is a great reminder from the markets for all investors.”

What a week has it been for a very long time. We have been spoiled by such massive gains in such a short period of time. This kind of a market makes all of us feel that we are great stock pickers and great participants in the market, does it not?
We have been investing for 30 years and I am again reminded that long-term investors should learn to ignore the general market perspectives and market wisdom because not much ago, there was a lot of caution, lot of worry about the markets Michael Burry was putting on a big short and people said look, he is a very smart guy who made billions shorting the market. Crude prices had gone up and there was a worry that the Fed will increase rates and a lot of investors got under allocated to the markets at that point of time.

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We discussed the low participation and anaemic foreign flows and if you look at it, the markets have turned down their heads. The people who stayed invested, people who ignored the market noise and said look markets have an auto