Market is Over-Valued!

As of today Dec 27, 2020 the Indian Stock Market is Over-valued based on:

NIFTY PE Ratio which is at 36 compared to the previous peaks of 30 during 2008, 2000 etc.

What you should do?

Following are the changes recommended:

Futurecaps Recommendations Hold the past recommendations since they are trading below the Intrinsic Value. You can buy more the recent 2 recommendations which are around Buy Range.
Non-Futurecaps Recommendations Hold/Sell in few months at their Peak based on the Intrinsic Value Calculation & Move to Fundamentally Good Growth Scrips so your P/f returns will be boosted.

Following are the changes recommended on Free Cash Holding:

Maintain 70:30 Ratio (70% should go to Stocks & 30% to Cash Funds like FD, Bond etc.)

Remember the Golden Rules of Investing.

Any bear attack are Opportunities to Buy a Fundamentally Good Growth Stock! (You should be having Free Cash at this time)

What could happen going forward?

Market may go even higher in the short-to-medium term due to:

FII is continuous buyers
Smallcap & Midcap have different Cycles
We are hardly 1 year from a Pandemic induced Bear Market
The Global Economy seems Recovering from Corona Troubles
Lifting of Lock-downs & Introduction of Vaccines will accelerate the Economy Recovery
US is coming with $2000 Stimulus Checks which will boost the US & Asian markets again

Smallcap & Midcap Index have 50% more Uptrend remaining

However one should not forget that during Over-valued times any Bear Attacks will cause Higher Depletion to smallcap & midcap segments in order of 50-80% levels. (On the contrary any Bull Run will give Super High returns like 500-800% too)

Overview of 2020

During 2020 we have recommended around 15 stocks (Best Value in India) & it gave high Performance like 100-200%. Even our Hidden Gems had rocking performance too. All these keeps our words to be Best Value Advisor in India.