It isn’t easy to identify the Crucial Time before a Bull Market is Officially Over. The only thing that saves you from market volatility is your investment horizon and a simple but utmost efficient strategy.
Our leveraged positions and wild trading bets in those otherwise unwanted stocks which we may not keep in our core holdings have to go away. News flow always clamours our mind and makes us believe in unnecessary noise which one has to avoid in order to invest and trade right. One can rely on his sources and follow a strategy to stay afloat, but individuals who want to experience and learn the hard way, they have to dig-deeper on their own.
For the lone wolves out there, Survival in the long run is the key challenge to keep up with as different instruments we exercise come with highly varied capital risk possibilities. We can often find ourselves in tricky situations where it becomes difficult to cut losses and strategise again. It’s all about how well you can protect the damage when a bull market comes to an end without notice.
Well, apart from a lucky few forecasters and their following, most of us should actively manage downside probability. You would agree and maybe no one would deny that the complacent nature of a market is the first sign that the damage could be deeper. Timing large corrections isn’t easy as shocks can hit a trending bull market and a clue-less traders waiting in a range to react to awaited cues. So, the direction of your trading bias will always depend on your forecasting ability and the depth of your risk appetite.
Core Stock Portfolio Ideal for Very Long Term (Indian Retail Investor)
As an enthusiast blogger and a ready to learn sort investor, I have kept real close track of Indian stocks in a pursuit of creating a core equity portfolio with stocks of companies that have the potential to survive through the worst of economic phases and hopefully generate decent opportunity for people who do not feel shaky while committing anywhere between 3-15 years. This is my best so far, I hope to build a corpus through investing in these in a phased manner. Do not expect any short term returns as I have tried to make it as balanced as possible.
These are key companies from major sectors with a long history to prove their sustainability, mostly giant opportunities which may be filled with more positives than negatives for committed investors.
This is my first India focused post on the blog, I Aim to share quite often with regular readers. For now let me leave you with the quick list of core stock portfolio ideal for very long term Investors in Indian Stock Market :
1. Bharti Airtel
2. Idea Cellular
4. ICICI Bank
6. Tata Steel
9. Mahindra &Mahindra
10. Reliance Industries
I would give these stocks 50% cash allocation of my entire stock portfolio. I have not included IT and Pharma stocks to the core portfolio due to stretched valuations.