This is the biggest question now.Is it the end of the bull market?
According to me, it might be.We might see a good correction. The NIFTY is trading currently at a very high valuation for a long time.On the earnings front, the current quarter performance of companies is not good.The GDP numbers are also not good.GST is mainly the cause according to me for the GDP numbers.Many unorganized supply chains are broken totally.
Considering everything, I decided to decrease my exposure to equities.I sold off Apex frozen food IPO at 330.
I sold off Nocil, Maithan Alloys, Future Consumer in profit. And kept rest of the stocks.
The high of NIFTY P/E on 21st of September was 26.34.Historically this high P/E valuation is not sustainable.
And on the global front too, many reputed investors and hedge fund managers are anticipating a start of the bear market.Investors like Jim Rogers are saying that we are nearing a start of the bear market.
And the most important point that I came across is, the federal reserve is going to unload its balance sheet from October. The quantitative easing that was done during and after the global financial crisis is going to be finally over.And who knows what will happen after it.
Considering everything, I nearly sold half of our stocks and mutual funds.