Tiger Pie

Tiger Pie

If the Sensex PE is @ 21, as it happens to be right now, chances are bright that the situation described below is quite apt!

Read on & take care:

Got from the link: http://www.moneycontrol.com/news/market-outlook/powerful-bear-rally-underway-discontent-likely-enam-sec_416088-4.html

 

Q: So what sums up your strategy now? Would you say you're little circumspect about valuations but keep buying good prices?

A: Yes. At heart we are bullish folk in our firm, so every time the markets go down we like them to get cheap and like to buy them and sit tight but Nandan who is our Head of Research put a very lovely piece out where he said you have to play the tiger bird strategy. There is this bird apparently called the Tiger Pie sits and removes the picking from the teeth of the tiger while it is feasting. It is a very dangerous strategy to play and that's the phase the market seems to be in – that we are sitting on the mouth of Tiger over the next three-months – something has to happen in the world and we are trying to eke out 2-5% gains every week. It may not be the best thing to do, so for those who can afford it, you may want to lower your risk profile of your portfolio whether by more cash or having stocks which you can liquefy and then quickly go back into the markets or you have to extend your time horizon and say I do want to play this power and insurance thing and I don't care if I hit air pocket in the middle and if it does fall I will actually start increasing my weightages and holdings over there.

Q: Statistically how often does the bird live?

A: I don't know.

Q: He gets chomped by the tiger most likely?

A: Most likely.

I've started increasing cash levels in my portfolio - Would like to keep a good load of cash to invest when the markets eventually turn around.

Regards,

N

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