Anil Singhvi decodes what is fuelling stock markets now; reveals stay-safe strategy as equity, gold head north

At a time when all asset class — gold, silver, equity, bond yields, etc — are moving northward, stock market investors are now running scared about a correction - its extent and reach. How bad will it be, if it comes and will it come at all? Decoding the trend and laying out a potent strategy, Zee Business Managing Editor Anil Singhvi said that one should not wait for someone to blink first, he said that this sweet spot in the market won't last long. 

And what should investors do? The Market Guru said his advise for investors is to come out of their positions once there is a 2-3 per cent correction in their holdings.

Sounding a warning for stock market investors, Anil Singhvi said they should remember that 'market can remain irrational longer than you remain solvent.'

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Singhvi maps the trend, reveals what is boosting markets and puts it all in perspective. He said, "At a time, when majority of the asset classed are skyrocketing, it's all about who blinks first. There is no liquidity crisis in the market as these asset class are going upward due to the heavy buying. In fact, there is news about second stimulus package coming in from the US government and that means there would be more money in the market leading to more liquidity." 

Singhvi said that in current market scenario, liquidity is the key and its ample liquidity in the markets that has made the global markets insulated from the Coronavirus news updates.

On how investors can remain safe from this irrational market behaviour, Singhvi said, "Such type of market behaviour is called sweet spot and it doesn't last longed than than 15 days to one month. One must remember that market doesn't signal its top-out. So, it's for us to remain vigilant and come out if there is a correction of 2-3 per cent in our position."

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Singhvi went on to add that it can be gold or silver prices that may correct first, but one should not wait for any of the asset classes to correct first because it can be any one of them and by the time the correction becomes visible, you would have incurred heavy loss. So, better to come out of your position if there is a correction.