Enjoy the 5-10-20 year ride; don’t go around tweeting one day’s return on one stock: Samir Arora
Samir Arora, Founder, Helios Capital, says ‘the FOMO feeling should be there to invest for the long term. Do not hope and pray that the whole market goes up in six months before you have invested a major proportion of your future income. You actually want the market to go up steadily which it never does. It is not that I am saying that it ever does that. I am just saying just enjoy the whole ride rather than a day at a time.”
Are largecap stocks getting ready to do a tango now?
Yes, and that we have been saying for long simply because if you look at the performance of midcap stocks, say from 2000 to 2019, before Covid, there was not a very big difference between the midcap index and the largecap index. Then suddenly from 2020, if you start from March, the difference is something like 25% per annum over two years. We know broadly that these things in the end are somewhat similar. The midcap is about 0.5% to 1% higher in normal long duration and so this is obviously extreme.
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We also broadly know that some of the largecaps have been doing well otherwise, for example the consumer stocks like Levers. Then there are the IT guys. And then there are the financial guys. So broadly, we believe that the financial guys have actually been delivering and they have not gone up so they shall outperform. That is we hope and pray and position ourselves for.
The positioning of the market in November has reflected a global rising tide phenomenon where from gold to Bitcoin to emerging
