Put your conviction to work.

“When will you turn bullish?” Posing this question to an informed fund manager drew a cool response. “When the FII’s sell”. This was a year ago. The interim period has seen quite the opposite with incessant selling by DII’s and matching buying by FII’s. The past few weeks have seen the situation reverse. FII’s have been sellers of Indian equities and DII’s have turned buyers. But, the ability of DII’s to buy is limited to their cash and once that is exhausted, we will need fresh inflows from the domestic retail investors. The prospects for that are limited given that domestic retail investors have been secularly avoiding equity. Mostly, domestic investors ownership of equity at this point of time is possibly at a historic low. Under ownership is certainly bad in one sense. If you are under owned in equity and the markets sense a clear mandate in the run up to the poll results, it will give you no time to correct the situation. At that time, a heavy premium is likely to be suffered. It will be far safer to correct your under ownership of equity now.

The twin killers of success are impatience and greed. ~ Jim Rohn.

Invest speak: Investing globally has been a much loved theme among serious investors and HNI’s. But, the results of such investments may not be as lucrative going forward as they have been in the past 2 years. Importantly, the complexities of the global economies and fund flows are beyond the grasp of even serious market players. So, investing in developed markets is turning out to be a game played in the blind. We could see a nasty negative surprise in the developed economies. Investing in the domestic markets look far more finite with the worst actually factored in and with no great surprises in store. As things stand, the fact that there can’t be too many negative surprises in the domestic markets is a huge positive.

What your investing need now is patience & persistence.

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