Some arguments for buying more equity

What makes equity a good buy at the current PE? Is it justified at all?

Well in life either you need a sale or a story to tell. Since you cannot tell a story every day, you need to sell. To sell you need a story which is easy to believe. Well easy for the end investor I mean. He has to justify to his mind and his wife’s mind that equity will out perform debt, gold, copper, aluminium, real estate,….and therefore equity (direct or mutual funds) is a great buy. How do you justify the current prices? Is that easy? well, hear….

  • Sip is good at any starting point if you have patience (yes it has moved from 5 years to 22 years, but that’s beside the point)
  • Govt. will be in a liberal giving mode from Sep 2017 preparing itself for the 2019 elections
  • The 2018 budget will be very liberal hoping to swing the next election
  • We have still not discounted the UP victory and the 395 seats that NaMo will get in 2019
  • Our current leadership in the country and many states is fantastic
  • Ease of doing business in India
  • If you do SIP you cannot EVER lose all your capital
  • Mid caps can and will be at a premium to large caps (oops we are getting more money in midcaps, need new theory)
  • As more people come under NPS, the money going into the indices keeps increasing
  • Indian fund managers are geniuses they will continue to get alpha permanently – well at least for the next 224 years
  • Our investment penetration is still poor, and we could easily double the sip numbers and the average amount of SIP
  • look at the number of JanDhan accounts, all are potential sip investors
  • GST implementation will mean GDP will go up by 2%
  • Weakening US means more FII inflow
  • Every mutual fund is able to increase its aum..so market has to at least double in 5 years
  • look at the dividends that the psu shares are paying…all that cash will come back into the equity markets
  • SIP always works
  • look at the number of relationship managers – all are selling equity SIP which means that much more cash for fund managers
  • look at the number of ULIP being sold
  • with such aggressive buying by the average middle class markets are bound to go up PERMANENTLY.

Welcome to the world of the perma bull ……….its paradise out there..

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

3 Responses to “Some arguments for buying more equity”

  1. This is the time when the wise words of Howards Marks and other experienced Gurus are needed the most.

    But you know what, I’ve given up on all this.

    Now I think let the world go to hell, who am I to tell anything to anyone? All I need to do is make money for myself and myself only. And for that it’s best if the world does keep going manic-depressive all the time. So I’m cheering this rally, why not create a few greater fools and benefit from them? 😉

  2. @ Shan,

    Ya Ya. Let the so called Regulators be the witness…

  3. Does that mean I should stop my SIP?

Leave a Reply

This blog is kept spam free by WP-SpamFree.