FASTEN YOUR SEAT BELTS, PLEASE

MOST MARKET EXPERTS ARE BULLISH ON INDIAN EQUITIES RIGHT NOW, BUT SOME CAUTION NEVER HURT ANYONE. NOW IS A GOOD TIME TO TAKE NOTE OF SOME OF THE HEADWINDS THAT COULD MAKE THE RIDE BUMPY FOR INVESTORS

- ASHISH RUKHAIYAR & RAHUL OBEROI

"THE FOUR MOST dangerous words in investing are: it’s different this time.” 

This oft-repeated quote in reference to the stock market was uttered by legendary investor and money manager Sir John Templeton. The mutual fund pioneer would certainly know. His Templeton Growth Fund launched in 1954 delivered 15 per cent returns annually for 38 consecutive years. The quote may well have been uttered ages ago, but it has stood the test of time. There is no market cycle—especially periods of upswings— when a large section of market experts has not uttered the same four dangerous words: it’s different this time.

Interestingly, it’s no different this time, too!

Both the Indian benchmark indices—the BSE Sensex and the broader Nifty 50 of the National Stock Exchange—touched their respective highs in July, and market experts were quick to point out how the rally in the Indian stock market was different this time around, especially when many other foreign markets were struggling amid global and their own set of domestic headwinds.