Invest selectively.

Remember “musical chairs”, the game played in your childhood. Investing in bull markets is very similar. It is only when the music stops that we will know who is holding seat and who is standing. Till then, investors buy and sell stocks merrily without an iota of fear. Many even believe the music will never stop. But, like all frenzies being brought to a stop, this one too will. When loads of money chases an asset class, the frenzy only tends to go out of control. So, even otherwise most mature men scramble to play the stock market game. They jostle and jump to catch stocks that are rising under the influence of sentiment. The game soon looks like “Violent musical chairs”. The stock exchanges bring in curbs. Even that doesn’t change things. Sloshed under the tide of liquidity, the stock markets seem to be losing control over mid and small caps. Soon, something random may stop the music. If nothing does, we always have the annual programmed event called the Union budget. Till then, investors will keep running.

Iwiz: It is only when the music stops that we will know who are the odd men standing.

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