Poll Position: Has the story unraveled for ‘narrative stocks’?
Warren Buffett, sat down for an interview with American public broadcaster PBS. He was asked a range of questions about his investment philosophy, state of the economy and his outlook for the country. Finally, when he was quizzed about the stock markets, Buffett condensed over 70 years of his investing wisdom into a couple of pithy sentences.
“I don’t try and guess when to get in and out of the market. I have owned stocks consistently since 1942....I was buying stocks the day before the election. I was buying the same stocks the day after the election.
And if Hillary (Clinton) had been elected, it would have been the same thing," he said. Buffett may not have followed the Indian elections closely, but it is safe to assume that his advice to investors would remain unchanged. The spectre of coalition politics returning in India after a decade of dominance by the Bharatiya Janata Party (BJP) has spooked investors, but analysts say the fears may be overdone.
“Please don’t be swayed by TV headlines. The fundamentals are intact for the market. There is no need to panic at all.
Maybe for the next couple of days there will be some volatility till the new government is sworn in, but the market will find its feet. The long-term trajectory for the market remains in place," Rajesh Palviya, senior vice president of research at Axis Securities, told Mint. This, in fact, is the perfect time to enter the markets for those who had missed the bus as the valuations have become palatable, though some pockets are still frothy, he added.
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