Don’t go for cash! Follow Druckenmiller, press on the pedal & go for home run now: Anshul Saigal
Anshul Saigal, Founder, Saigal Capital, says he follows Druckenmiller. One thing that Druckenmiller says is that when you are having a good year, the tendency is to book profits and hold cash or be defensive, but it is then that you should be stepping on the pedal and going for the home run. Given how this year has gone, the tendency by now is to hold cash and take some profits off the table. But a smart investor should press on the pedal because, between now and year-end, certain segments of the market may deliver outsized returns even from here.
What do you make of the market setup? Everything is going our way. First it was crude price, then flows and now the recovery in rural India.
Anshul Saigal: Yes, it is an interesting market. Rural economy has been weak for the better part of the last four years. Individual households have been filling their pockets, ensuring that their savings are recovered before they go out and spend and for that reason that market has been weak. But we are at a cusp, we believe at this moment, where this market is likely to turn. Initial signs have been seen over the last two quarters in company results.
FMCG company after company is indicating that there is a turn in that segment of the market. And what is interesting is that while this market has been going one way and that is up, many of these rural discretionary companies have been at multi-year lows. That is where there is an opportunity, where once the rural economy turns and the tide lifts all boats, these companies will be
