Diversify your portfolio to gain from post-elections policies: Mahantesh Sabarad

economictimes.indiatimes.com:

A strategy one can really take or look at is trying to diversify your portfolio as much as possible because post-elections, whenever the new government starts to form, there will be new policy directions that you can see, says Mahantesh Sabarad, Independent Market Expert.

Earlier this year, we had experts join us and tell us that the election seemed to be a non-event of sorts because the Street had predicted what the outcome was going to be like. But over the last couple of sessions, we have seen that it is safe to say this is nowhere near a non-event because the kind of volatility that we have been seeing across the market is too high. Tell us what your strategy would be going ahead, at least into next week. How does one position their portfolio in order to shield from the volatility that we could see on the 4th of June?

Firstly, the volatility is very high. You can see the VIX numbers are very high, touching 24 odd numbers. This tells you the market is not too happy about the outcome that will come. When I say not too happy, it is an outcome which is going to be quite risky. Having said that, the strategy, therefore, would be to try to remain as liquid as possible to take advantage of the upcoming volatility because a lot of stocks will swing up and down in this phase when the election outcomes start coming in, particularly with the exit poll coming in.

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