Until Election Results, Wait and Watch!

Last week, both the frontline equity indices reached new lifetime highs, a milestone that dominated headlines on business news channels and in financial newspapers. The market capitalisation of all the listed stocks crossed the mark of USD 5 trillion for the first time ever. Such dramatic headlines can easily lure investors into believing that the markets are poised to go even higher, prompting impulsive investment decisions. I can understand the temptation to chase a booming market and the fear of missing out when the stock market peaks. However, there are several reasons why investors should avoid making hasty ‘buy’ or ‘sell’ decisions based solely on these new highs.