An unbelievable 2020 is coming to an end and investors have already started focusing on what may lie ahead in 2021. The problem of entering a new year after a stellar market performance is always the high level of optimism and a hint of overconfidence in the ability of the markets to deliver positive returns. By all means, the market structure is simply looking great and there are no major signals of a reversal in trend. However, investors are increasingly realizing that the stock prices cannot jump in a unidirectional manner. The year 2021 may welcome us with additional volatility which may surprise investors.
Beginning of any fresh year there is always an attempt made by market participants to speculate which sectors will outperform and where the Sensex is headed towards. As of now, investors want to know:
• Whether the outperformers of 2020 will continue to outperform in 2021?
• Will the Sensex deliver double-digit returns in 2021?
• Will small-caps and mid-caps rally in 2021?
• Whether value stocks will outperform growth stocks in terms of value investing versus growth investing?
While the questions are pretty objective in nature, the answers to these questions are definitely not straightforward and subjective in nature.
Will Outperformers of 2020 do Good in 2021?
It is expected that the IT and pharmaceutical companies will continue to do well in 2021. There is earnings visibility in both sectors and there is a good amount of traction in stocks from both sectors as we enter 2021. Investors however have to be cautious on the valuation front. The outperformers of 2020 are expected to do well but it will be difficult for the stocks from these two dominant sectors to outperform in 2021.
هذه القصة مأخوذة من طبعة January 04, 2021 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة January 04, 2021 من Dalal Street Investment Journal.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
