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Let us start of by wishing you a very happy Diwali and a prosperous year ahead.
As Samvat 2071 comes to an end, let us take a moment to review the year gone by.
One thing is clear if we look at the numbers. All those who entered the markets last Diwali would be disappointed as the markets have declined on a YoY basis. Most of this brunt can be blamed for the dampened earnings levels, as well as the fading hopes on the promised big-bang reforms. Also, the volatility in equity markets globally had a bearing on Indian Indices.
As per the Economic Times, this was the third worst performance in a decade and fourth worst in the last fifteen years. The BSE Sensex has lost about 3% this Samvat and about 6.5% in US$ terms. The hype surrounding the NDA government's ascent to power in 2014 has seemingly died.
However, this can be seen as yet another reminder for all who expect quick returns from the markets. Time in the markets is more important than timing the markets. All who embrace this eternal principle of the stock market achieve good returns.
Much delayed reforms are much needed for a bounce back in the market. However, we believe investors will be far better served if the focus is on individual stocks by following a bottom-up approach to investing.
As always, we recommend buying stocks with solid fundamentals only when they are available at attractive valuations. Time will then work in your favour and provide you satisfactory returns.
In short, ignore the noise, stick to fundamentals and you should do well.
Have a great year ahead!
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