Is Your Portfolio Ready for Another 5 Years of Modi? - Profit Hunter by Equitymaster
Free Reports

Is Your Portfolio Ready for Another 5 Years of Modi?

May 22, 2019

Rahul Shah, Editor, Profit Hunter

Tomorrow is going to be a very interesting day indeed!

And not because the election result will be out - I believe India will do well over the long term irrespective of who comes to power.

But it'll be interesting because the markets have so far completely lapped up the exit polls. They've risen sharply in the last 3 days as a result.

And given that exit polls are not always right, it will be very interesting to see what the market does in case of an upset.

The reaction could be manifold sharper in that case....

Anyway, the whole nation is holding its breath in anticipation, and perhaps you are too.

What do you think will happen?

Personally, as things stand now, there's a greater possibility of Modi coming back to power than making way for a new prime minister.

--- Advertisement ---
The 4 Stocks to Buy If Modi Comes to Power Tomorrow...

The exit polls have clearly indicated who our next Prime Minister could be...

Causing an instant market rally of 1,400 points.

And tomorrow, when the election results are out, we'll know for sure.

But this isn't about profiting from short-term rallies - a BJP win could significantly boost the economy and the stock market in the long run as well.

Starting with these 4 stocks...which Richa Agarwal has recommended a strong BUY on.

You'll find the details here.
------------------------------

But, of course, the possibility always remains of the exit polls getting it horribly wrong and the NDA falling way short of majority.

Considering my opinion then, how should one be shaping their investment approach?

Well, while my opinion about the election result may be great for making small talk with friends and colleagues...

...My musings are completely and utterly useless for making investing decisions.

For investments, I have a strong 'no predictions' policy.

Predictions about such things are impossible to pin down with any degree of accuracy.

They are never reliable enough that you can invest your money on that basis.

And I make it a point to not be fooled into believing otherwise.

In all my experience, what I've seen work far far better is being good at making investing decisions on the basis of the present (not the future) - that is, making decisions based on how the market stands at any given point in time.

In other words, considering factors like - the situation in the stock market today, present valuations of the index, and what other non-index stocks are trading at these days, etc.

--- Advertisement ---
What Modi's Expected Win Could Mean for These 4 Stocks...

The exit polls have clearly indicated who the winner of Elections 2019 could be.

And if you're a Modi-supporter or not, this could be great news for you.

Why?

Because this has the potential to trigger a strong uptick in the markets...

The market rose 1,400 points yesterday.

And this is just the beginning...

The beginning of a massive wealth-creating opportunity for early investors.

You can read all about this opportunity here, along with details on Richa Agarwal's top 4 stocks to profit from now.
------------------------------

Looking at these factors, one should be doing three major things currently:

  1. Have a good bunch of very undervalued stocks to take advantage of a potentially big rise in the market post elections.
  2. Have a large cash component to take advantage of any potentially big fall in the market by picking up new undervalued stocks that may become available due to such a fall.
  3. Set up the relative proportion of the above two components in your portfolio to best suit the market situation as it stands today. There is a strong case for your cash component being even larger than your stock component considering how high current market valuations are.

Do this and whichever way the stock market goes on election day - up or down - you will be well prepared for the opportunities it throws up.

So stop trying to outguess the guessers.

For your investments, whether it's the budget, interest rate announcements or election results, put in place a strong 'no predictions' policy.

Remember, investment profits don't come from predictions - they come from being prepared.

Warm regards,

Rahul Shah
Rahul Shah
Editor and Research Analyst, Profit Hunter

PS: A Modi win could significantly boost the economy and the stock market in the long run as well. Get ahead of the crowd by starting with these 4 stocks...which Richa Agarwal has recommended a strong BUY on - today. Click here now.

Recent Articles

Don't Worry About the Slowdown...this is the Right Time to Buy Small Caps June 18, 2019
I can give you an elaborate explanation full of numbers why you must buy these stocks today, but the most eloquent explanation comes from just this one line.
7 Bluechips to Profit from Tech Disruption June 17, 2019
We are living in an era of disruption. Are your stocks well equipped to adapt to changes that disruption will bring along?
Why I Believe Smallcaps Will Catch up to the Sensex June 14, 2019
Smallcaps have gone nowhere even as the Sensex makes new all-time highs. Find out why Richa believes this a good opportunity to invest in smallcaps.
There Are Trading Opportunities Beyond NBFCs June 13, 2019
The NBFC Crisis is creating opportunities not only in the NBFC space but somewhere else as well. Find it here.

Equitymaster requests your view! Post a comment on "Is Your Portfolio Ready for Another 5 Years of Modi?". Click here!