Strategy to adopt now
Ace investor and trader Rakesh Jhunjhunwala believes that there is no bubble in the market as yet. He believes that we are 16.5 times 2007 earnings and that can’t be a bubble. “Surely markets could correct and can go down. From tomorrow it can go down but not any euphoric bubble or liquidity, which has come temporarily and is going to go away tomorrow. I don’t think so,” he says.
However, he advises investors to exercise caution and carefulness. “At every higher level, buy and beware,” he says.
Getting nostalgic, Jhunjhunwala says, “I remember the day I started my career in the market. The index was 150, then we saw 1000 and now 10000. One day we may reach 1,00,000. It is a very historic day, a very historic event and a great day for every Indian including myself.”