This Crash Indicator has Bad News for 2021 - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

This Crash Indicator has Bad News for 2021 podcast

Dec 11, 2020

If the year 2020 has reinforced anything, it is the fact that stock market predictions should be taken with a huge pinch of salt.

No one would have predicted what transpired in 2020. The markets went from a multi-year low to a new all-time high in a matter of few months, thus proving almost every pundit wrong.

But if predictions are useless, how does one take a view of the future?

Well, there's an approach out there that can prove to be quite effective. What exactly is this approach and how does it work?

Do take a look.

Here's more on value investing:

Rahul Shah

Rahul Shah (Research Analyst), Managing Editor, Microcap Millionaires has led the team from the front in developing some of our most stringent and rewarding research processes. As per his own admission, the turning point in Rahul's life as a financial analyst came a few years back when he got introduced to the works of Warren Buffett and Charlie Munger. From Buffett, he understood the value of investing in good quality business with powerful moats and strong management teams. Charlie Munger on the other hand inspired him to be a lifelong learner and use mental models in order to arrive at the crux of matters across most disciplines. Rahul firmly believes that in order to be successful at investing, you have to do the big things right and possess a great temperament and a contrarian streak.

Equitymaster requests your view! Post a comment on "This Crash Indicator has Bad News for 2021". Click here!

4 Responses to "This Crash Indicator has Bad News for 2021"


Dec 15, 2020

While I agree withe overall assessment, I Think we can not use absolute numbers like p/e 25-27 over 15-20 years.
Most companies with High mcaP nowadays are from Tech sector and they have high P/Es, so maybe theres a need to calibrate the value of P/E for predicting a market fall

Like (1)

P S Rao

Dec 13, 2020

Your warning is in bad taste. Why did not you do this video when market was at p/e of 17.15 on march 23, 2020 and advised to buy truck loads of equity and invest 75% in equity. You seem to encourage only the fear but not greed. You are advisor and your money is not at play. Still you force fear now. Is it not better to be away from such crap when you can not boldly ask investors between 23rd and 31st march 2020. Can you send me one article you published saying that even if it amounts to taking loans @18-24% per annum, that time was a clear winner. You now told that you are shocked and advise stock market is not predictable, Going by your chart, it was clear that there will be at least 70-80% returns in the next 3 years when p/e touches below 18.

Like (1)

Milind Patil

Dec 12, 2020

Dear Rahul Ji
Greetings for the day
I thanks for your update on market and also agreed. But sometimes do not understand, like just before month we invested in Top5 10x project almost little below the suggested range. Do you think that we should book partial profit when the investment is for 2/3 years perspective?
Thanks and Best Regards

Like (1)


Dec 11, 2020

There are record number of demat accounts opening. In 2021 retail investors will invest after selling in the panic of March 2020.

Like (2)
Equitymaster requests your view! Post a comment on "This Crash Indicator has Bad News for 2021". Click here!

More Views on News

Best Banking & PSU Debt Funds to Invest in 2021 (Outside View)

Apr 13, 2021

PersonalFN explains the outlook for Banking & PSU Debt funds and the best Banking & PSU Debt funds that can be considered for investment in 2021.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

The Next Set of Smallcap Winners (Profit Hunter)

Apr 13, 2021

Price is the only due diligence one might require to buy this business.

Should Mutual Fund Investors Worry About Partial Lockdown? (Outside View)

Apr 12, 2021

PersonalFN explains whether the second wave of COVID-19 infections impact your mutual fund investments.

More Views on News

Most Popular

Buffett Style Investing

A detailed peek into how Warren Buffett identifies the value of a stock, his concept of margin of safety and more.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 13, 2021 (Close)