Last few weeks have been great for Indian equity market .Well but is this hope justified ??
In Crazy investing one of key success mantras is probability of success . If the probablity of success is skewed towards you it makes sense to take up the bet .
In the current Modi wave people feel the probability of economic success will be high and hence this crazy optimism makes sense .
How do I react ??
As always I am bigger fan of micro crazy events . Macro Crazy events are for BIG boys or institutional players . They can encash it better than us on account of information asymmetry . In most crazy macro events like FED taper , Internet BOOM or BUST or MODI wave , it is better we let large players win and lose as small players will be crashed to death by turn of events .
In any such Macro tsumani small investors should take shelter of time and let the overall optimism and pessimism ride away . Often post such tsuamani lot of naked truth are exposed at micro level and often we get lot of companies either at bargain prices to buy or ridiculous prices giving opportunity to sell .
Well I had a great run during 2008 - 2012 FED mistakes and corrections , now the opportunities are plenty on account of Modi Wave .
Let us all ride it ...
Successful investing is all about being crazy , different and less wrong than others . The ideas and process written here may not suit all risk profiles so please check with your financial "doctor" before adopting .
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