Markets Underlying Tone Is Bullish – Make The Most Of It !
Before we talk about the markets, allow me to wish you all investors a Happy and Prosperous New Year. May the year 2019 bring to you Health, Wealth and Happiness! I also take this unique opportunity to specially thank those investors who have been with us through a difficult 2018.
Markets at this juncture seem in no mood to pamper bulls or bears. It is indeed a testing time for those looking for a clear direction in the markets. However, what is heartening to know is that the broader markets are finally chipping in and outperforming the large-caps in the last couple of weeks. We reiterate that the year 2019 could be the year for the mid-caps and small-caps. Also, it is widely speculated that this year, i.e 2019, we may see emerging markets outperform developed markets by a good margin. In my view, within the emerging market space, India will remain the top performer, with support from its economic growth.
Looking at the strong probability of outperformance in H2CY19, I would recommend investors not to miss investment opportunities in H1CY19. The next six months are ripe for investments. Most investors may sit on the fence speculating who will win the general elections; however, smart investors should become active during this period.
Right now, there is no trigger for the markets and traders may find the markets dull and boring. However, markets may take cues from the coming earnings season, which promises to deliver as per investors’ expectations. The current quarter earnings will be better than the previous quarter and, hopefully, markets will factor in the positives rationally.
Looking at the performance of a majority of the stocks in 2018, one gets a feeling that most of them are available at steep discounts. In the current cover story, we have done exactly what investors would want us to do – identify the beaten down stocks of 2018 and come up with an extensive list of stocks that have good growth prospects in 2019. Beyond the mouth-watering menu of beaten down stocks of 2018 that can do well in 2019, we have also discussed the mistakes that investors made in 2018 and which can be avoided in 2019. Do help us with your feedback on the cover story.
It is 2019 and the year is full of promises for investors. In one of our special stories, we have analysed the benefits of focusing on rural sector stocks in 2019. Come election year and there will be added volatility in the rural sector stocks. Investors may profit from our observations in the special story. Do make the most of our findings. In one of our special stories, we have provided technical outlook on various popular indices, including Nifty. The outlook on these popular indices will help you all in formulating your investment strategy for the coming months.
Investors should tirelessly continue to hunt for undervalued stocks as the rewards will be much greater in 2019 if the investment process is correct. For 2019, build a portfolio with a flavour of the broader markets. Adopt a bottom-up approach for stock selection and stay away from the popular stocks that are over-owned at this moment.
The market undertone is bullish – make the most of it.
Happy Investing and Happy New Year once again!