Turning Volatility Into Opportunity

Equity market went down last month owing to many factors. It is important to keep adjusting your asset allocation, which investors need to navigate judiciously. The stock market movement so far this year is a testament to its whimsical nature. From April 2018 to September 2018, it witnessed a stellar rally with key benchmark indices scaling life-time highs. Subsequently, markets peaked in September and have corrected by more than 10 per cent since then. Stocks that are insulated from the GST and demonetisation shocks have performed well and will continue to stay insulated from extreme volatility. Additionally, as we approach November-December, markets will start discounting March 2019 numbers. From that perspective, markets are not very expensive and will provide opportunities for astute investors. The investment climate has been peppered with volatility. Headwinds in the form of rising...