Greetings from WealthSecure!!
Nifty has touched the crucial level of 10,000, aided primarily by investor optimism & fund flows. While the media is screaming revival of fundamentals at every major development since Modi Govt’s election, with the latest being, GST roll out, the earnings are refusing to budge. In fact they are being systematically downgraded by seasoned analysts right from their lofty estimates made at each year’s beginning. Investing based on the assumption that liquidity alone will continue to support can prove to be futile and risky at this juncture. The gap between reality and perception on the ground is one of the widest seen in the last two decades. And we have decided to say ‘enough’.
To help impartially assess whether markets are paying too much or too little for participating in businesses and whether the odds are of making or losing money, WealthSecure has developed a market timing model called W-TAAf. It has earlier helped investors turn cautious in March 2015, coincidentally right at the top. We feel another such turning point is nearby if one can recognise the wide gap between perception and reality and act against extreme common consensus. This insight make all the difference in safeguarding your precious investments and you are most likely to get to invest at lower levels, which can minimise your risk and maximise your wealth.
Our W-TAAf model is presently predicting considerable pause/correction in markets which have deviated significantly from fundamentals. The markets are currently standing on only one of the key pillars that support it and which are measured by our model. And that’s liquidity. The other three which are not favouring continuity into the markets are:
1. Earnings momentum
We urge all the smart investors to take heed of W-TAAf, which recommends one or all the three actions ASAP
1. Pause investing into Equities until market corrects in price / time.
2. Switch excess Equity to Liquid Funds based on your asset allocation.
3. Redeem all monies required for your planned consumption within the next year.
Note : Our W-TAAf model prefer trailing P/E i.e. declared earnings rather than estimates which most analysts have been erroneously estimating for nearly a decade. The model is further explained in the following link- W-TAAF Model . Please DO READ the note and allow us to reach out to you and explain our strategies and models in person. It will benefit you.
Happy safeguarding …