Synopsis
At the start of 2023, the mood in the market was bullish but there were some apprehensions due to many reasons primarily being that FII’s had not been buying and there were some mega IPO issues in the pipeline. By the end of 2023, there is only bullishness on the street. Why most investors are feeling bullish is not that FII have returned to markets, but the fact that because mid-cap stocks have done extremely well and their portfolios are once again showing decent returns. As the party continues while staying bullish, just add an element of caution. When we use the word caution, we means stay with quality.
Buying quality stocks should be one of the basic principles while investing in markets. But when one is buying mid-cap stocks this principle becomes even more important for multiple reasons and specially at a time when valuations are not cheap and small corrections can lead to strong negative reaction in stock prices. The big question is how does one take care of this aspect of investing when everything is either fairly priced or overpriced.
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