Tweet Buster: Waiting for Godot, Fomo factor & art of stock picking
The hopes are high that it would give the stock market a much-needed leg up.
Hopes are high that some government dole puts would help put the economy back on track and give the stock market the much-needed leg-up. Most of the top names on Dalal Street are saying the government needs to act sooner than later. Some say any delay in the stimulus package will only prolong the pain in the market.
Sandip Sabharwal, an independent market expert, said it's time for action and lack of one is what's making D-Street bleed.
Markets continue to crash as no visible action except for some statements which doesn't change anything. Subdued Ec… https://t.co/jspExINXhO— sandip sabharwal (@sandipsabharwal) 1565687854000
Basant Maheshwari, a PMS fund manager, seems to be in agreement with Sabharwal.
This market is becoming a classic 7 up 7 down - will remain that way till we don’t see a definite plan. You could b… https://t.co/gySTMt76ld— Basant Maheshwari (@BMTheEquityDesk) 1565755618000
Sabharwal said if nothing else works, faster recapitalisation of PSU banks can boost growth.
If nothing else, the government can atleast move faster on the recapitalization of PSU Banks announced in the Budge… https://t.co/1ibxuOyV4K— sandip sabharwal (@sandipsabharwal) 1565672417000
In another tweet, he said officials are worried that tax collections are below target, without realising that once there is an economic revival, revenue targets will be met.
Govts Direct as well as Indirect tax collections are way below targets Babus of @FinMinIndia don't want to cut GST… https://t.co/YgigWNui9a— sandip sabharwal (@sandipsabharwal) 1565950522000
Talking about the yield curve inversion, he said it is too early to call a recession.
Bond yield inversion i.e. Yield on long term bonds falling below those of short term bonds was used as a recession… https://t.co/54iYPE4Ddd— sandip sabharwal (@sandipsabharwal) 1565951558000
Sabharwal had another suggestion for the PMO. He says it is the right time to strike markets with a $20 billion bond issue.
US 10 yr bond yields hits 1.6% German hits -0.65% @PMOIndia please don't listen to whoever is advising you. Right… https://t.co/oR21Hg01xI— sandip sabharwal (@sandipsabharwal) 1565793312000
In a tweet, Shyam Sekhar said the narrative of how our market has changed in itself tells a story. Take a look.
The story of our market. From a bull market which celebrated rapid corporate earnings growth, we have descended int… https://t.co/jpGoCvlC3t— Shyam Sekhar (@shyamsek) 1565658891000
However, he says the market today is such that we create pessimism out of optimism.
Management is silent & doesn't guide. The Q1 result of the Company looks good. But, analysts say Q2 will be weaker.… https://t.co/0DZNR9m8g0— Shyam Sekhar (@shyamsek) 1565779464000
Sekhar says building back sentiment takes much more time that breaking it. Investing time in taking decision should take precedence for every investor.
Building back sentiment takes 10X the effort it takes to break it down. Once sentiment turns bad, it aint going to… https://t.co/6nuVt4wacX— Shyam Sekhar (@shyamsek) 1565965274000
Maheshwari, although, is hopeful that the worst is over for market and it has a YES Bank connection to it.
History says that when stressed companies like #YesBank gets new equity ‘risk’ capital it indicates that the wors… https://t.co/eTXmIgkD0O— Basant Maheshwari (@BMTheEquityDesk) 1565926587000
Prof Sanjay Bakshi, meanwhile, shared his mantra for stock picking and warned investors not to let FOMO get to you.
At least it has been for me. I maintain a hand-written diary and I write down what I am thinking about a particular… https://t.co/2NFyJIlxIE— Fundoo Professor (@Sanjay__Bakshi) 1565923342000
Maheshwari, too, offered a stock-picking tip. He says, "Companies with earnings growth will always find a way to move up."
Companies with earnings growth will always find a way to move up just as companies without earnings find a way to d… https://t.co/XQJhFkrcc8— Basant Maheshwari (@BMTheEquityDesk) 1565844756000
Samir Arora's investment advice in this market: “Look at quality of managements & moats before investing; equity outperforms debt over long term; don't take leverage.”
Have a long term view Mkts are volatile Earnings ultimately reflect in stk prices Look at quality of mgmts & moats… https://t.co/CGiaGDJTSk— Samir Arora (@Iamsamirarora) 1565849476000
Lastly, Sabharwal is seeing value in midcaps and smallcaps and says now is the time to buy fear in the market. Do you concur?
Buy fear, buy fear it the proven mantra Big value in Small and Mid Caps— sandip sabharwal (@sandipsabharwal) 1565937935000