The midcap and smallcap indices beat Sensex and Nifty by a wide margin during the year, as the rising tide lifted all boats. With no sign of a trend reversal in the Dollar Index and the US Fed maintaining an accommodative stance, foreign inflows are likely to continue well into the first half of 2020.
In today’s edition of Tweet Buster, we sift through social media posts by market gurus and spot investing mantras to help you sail into the New Year.
New Year Outlook
Independent market expert Sandip Sabharwal says the most bullish brokerage forecast for Nifty in 2021-end is 15,000. “It implies a 7-8% return from current Nifty levels. Risk- free 10-year bond is about 6%. Risk-Reward?,” he says.
The most bullish brokerage forecast I have seen as a Nifty Target for 2021 end is 15000 ( knowing the sell side the… https://t.co/nsqfDFCmuE
— sandip sabharwal (@sandipsabharwal) 1609224799000
Trading = gambling?
Is trading the markets gambling? This is one question that Zerodha co-founder and CEO Nithin Kamath gets asked often. “My answer is that yes, you can gamble when trading, just like you can gamble with everything else in life,” Kamath quips.
Is trading the markets gambling? I get asked often. My answer is that yes, you can gamble when trading, just like y… https://t.co/VEvq6NXEH4
— Nithin Kamath (@Nithin0dha) 1609149939000
For your portfolio
Retail investors often confuse investing with trading and end up either with losses or poor returns. Value investor Arun Mukherjee says while making long-term investment decisions, look out for companies that can grow at 15% for the next 10-20 years, instead of those that can grow 50% for next 1-2 years. “Consistency is more important than speed of growth. Market is very fond of such companies and rewards handsomely,” he advises.
While selecting companies for long term investments-Look out for companies which can grow at 15% for next 10-20 yea… https://t.co/PQ32TNob6G
— Arun Mukherjee (@Arunstockguru) 1609563064000
Sabharwal says residential real estate revival is very strong, despite the overall economy still languishing well below potential growth. “Companies that benefit due to this trend should do well in 2021,” he said.
Residential Real Estate revival is very strong despite the overall economy still languishing well below potential g… https://t.co/G5ExnsAEkw
— sandip sabharwal (@sandipsabharwal) 1609310390000
Sabharwal warns that rising prices of commodities like steel, copper, aluminum, fuel, chemicals, polymer, etc will hit profitability across the board, except for the producers themselves. “Worst impacted sectors will be auto & consumer durable companies which were already grappling with shortages, higher import duties, restrictions, etc,” he said.
Rising Steel,Copper,Aluminum,Fuel,Chemical, polymer etc prices will hit profitability across the board except for p… https://t.co/qyC5J5ZASf
— sandip sabharwal (@sandipsabharwal) 1609310731000
Forget all predictions
Microcap investor Ian Cassel says the older he gets, the more comfortable he is in remaining silent and letting others voice their opinions. “It’s the great thing about investing. Opinions and predictions don’t matter. Being right matters,” he insists.
The older I get the the more comfortable I am remaining silent and letting others voice their opinions. It’s the gr… https://t.co/2iE7NFGhmq
— Ian Cassel (@iancassel) 1609187938000
Watching people make more money than you that aren’t as smart or thorough or diligent or don’t work as hard as you… https://t.co/OvXjLeQZrz
— Ian Cassel (@iancassel) 1609274178000