Not just equity, look at gold as an asset class to diversify now: Sahil Kapoor

economictimes.indiatimes.com:

Sahil Kapoor, Head of Products & Market Strategist, DSP Mutual Fund, says “gold returns and equity returns are not very far off. If you manipulate the data a lot more, they will get even closer or gold will beat. But the reality is that gold has trailed equity return in India, but by a very slim margin. So, it makes sense to mix these assets together. Not just equity sectors but look at gold also as an asset class to diversify into.”

You were making a case whether it is just an India market specific headwind which you see or globally too, things could get shaky in the middle.
I think there are pockets in the US which are quite pricey. When you look at technology as a space, trading at 25-26 times trailing earnings, they are not cheap. History says that when you buy them, Nasdaq over a 3-year period hardly makes any money. Similarly, US largecaps are trading at 20 times trailing earnings and so not very cheap.

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But the smallcaps in the US are trading at below average valuations of 14 times or so. Currently, when you look at the globe, it is not a very synchronous picture. Each country, each index is trading in a different zone at different varying valuations. In large parts of the world, small and midcaps are still trading cheaper than largecaps and at a very large discount. So, no, I do not think it's a widespread phenomenon. You would not be able to paint it with the same brush across the world. But you will have to exercise caution where stocks are expensive. You have to