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The Stock Market Starts FY19 Positively...but What Happens Now? - Private Briefing

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The Stock Market Starts FY19 Positively...but What Happens Now?
Apr 7, 2018

Editor's Note: We are publishing a special 3-part Profit Builder Series for Private Briefing readers. In case you missed the first two parts, please click here and here. You will receive part 3 in just a few hours. Read on for the 'regular' Private Briefing for the week. - Rahul Goel


The BSE Sensex has begun FY19 on the front foot...with a 2% gain in the first week.

Now what?

Last week, I wrote to you about the Sensex in FY18 and how Equitymaster's top analysts are thinking about FY19.

They're weren't too concerned. Besides, the market isn't crashing.

We are in the middle of a slow correction. As I've said before, it's a correction triggered by politics at home and trade wars abroad.

The very nature of this correction makes any kind of crystal gazing very difficult indeed.

After all, who has seen into the minds of Indian politicians or American ones? Who knows what Modi and Trump have in store?

Just look at what our Parliamentarians are up to.

The second half of the budget session came to an end yesterday. It was among the least productive ever. A no-confidence motion against the government turned into a farce. Barring the Finance Bill, nothing moved in Parliament.

The markets are nervous about populism taking over the government in an election year. It has happened before and can certainly happen again.

On the other side of the world, Donald Trump has started his trade war by imposing tariffs on Chinese goods.

Predictably, the Chinese responded with tariffs of their own.

But Trump isn't done. Not by a long shot.

He has planned more protectionist measures. These include banning Chinese companies from the US. Such measures will become headline news soon enough.

It's exactly this type of escalation that has global markets on edge.

In such a scenario, how can anyone make a confident prediction?

Look for Stocks and Not Sectors

At Equitymaster, we follow a bottom-up approach to picking stocks.

That means, we first decide if a stock is a worthy candidate. Only then do we look at its sector.

We don't make many predictions about the market.

But sometimes...we do. I'm referring to Tanushree's predictions.

In the short-term: A 30% market crash.

In the long-term: Sensex 100,000.

You can read about her predictions here and here.

Tanushree first spoke about them at the Equitymaster Conference 2018.

She believes, the road to Sensex 100,000 will be bumpy.

...And we're in a bump right now.

In fact, we could be in middle of a 30% correction.

So What Does Tanushree Recommend?

Well, the first thing you should do is to turn off your TV.

Yes, really.

Second, if you own stocks that are not safe stocks, you should sell them. You can read about it here.

The ones that remain in your portfolio, should be stocks that provide you a sense of calm and comfort.

But whatever you do... Don't panic!

Remember, market corrections are the best time to load up on safe stocks.

This is the third and most important step.

Stocks may be risky in general...

...But don't make the mistake of equating safe stocks with other stocks. When it comes to investing in safe stocks, the risk is vastly lower.

So, relax and don't wait to take the plunge in the new financial year. Tanushree and her team will guide you, every step of the way.

For this purpose, she has put together a special report on the Top 5 Safe Stocks in the market today.

A Rare...and Very Special Offer for You

This offer is NOT available on an ongoing basis.

In fact, we almost never do this.

To cut a long story short...we're basically giving away our research (including Tanushree's special report)...virtually free for life.

Yes, that's right!

What's more, this will include a new bundle of services as well.

Also included...a risk-free 30-day trial.

If you act now, you can get lifetime access to 4 of our best services, the best of Equitymaster...virtually for FREE!

Like I said, we almost never do this.

But you must hurry. There's only a short time to get the best of Equitymaster.

This offer ends at midnight tonight!

So act now!

Warm regards,
Rahul Goel and Sarit Panackal

PS: Think of all the gains you could make and the losses you could avoid...simply by having access to the RIGHT information at the RIGHT time. Well, now you can. If you act now, you could get lifetime access to 4 of Equitymaster's best services...virtually for FREE! Click here to learn more.

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