In September 2023, a large, reputed research house made a bold statement calling the rally in mid cap and small cap stocks “irrational exuberance”. This declaration came after a well-known fund manager closed his fund to new money earlier in the year, citing the “frenetic and euphoric rally”. Despite these warnings, the rally in these stocks continues to surge.
These high-profile calls likely influenced many investors’ decisions, prompting some to hold off on investing or even sell their holdings. However, those who took the opposite view or ignored these calls may have reaped significant gains.
It is important to look beyond the headlines and fully understand the context of these calls. The research house’s decision to stop coverage may not have meant a recommendation to sell everything, while the fund manager’s move to halt new money flows did not affect existing investments. In reality, both situations were more nuanced than the alarming headlines suggested.
To benefit from such calls, investors should align themselves with gurus whose investing approach resonates with them and focus on individual stock selection rather than market trends. By staying loyal to their chosen investment strategy and avoiding knee-jerk reactions to market noise, investors can navigate the ups and downs of the market with more confidence and potentially achieve better returns.
Ultimately, consulting with a personal investment advisor or wealth manager before making any decisions is always recommended. Stay informed with the latest business news, market updates, and breaking events by downloading The Mint News App for daily updates.
