Gdmg. Have you seen a shepherd managing a flock of sheep. 1. He is behind the flock and not at the front.2. He ensures that the sheep falling back are brought into the main stream.3. He normally carries a stick. 4. He assumes that there is no risk from the front and the path is clear.5. If ever, a wild animal comes in front of the flock, he cannot prevent the flock running scattered. 6. He himself is unprotected.
That is what is happening to the equity markets today and the shepherd are in the name of DII like, mutual funds, insurance companies. These shepherd in a bull market go after the lagging sector and buying them. You can see this as sector after sector hogs the lime light. SBI life says they will invest in Midcaps, Aviva in PSU banks etc.
Ask yourself, how these are protected by neglected threats or unforeseen threats.
Now most of the investors are focused on returns and therefore you focus on risk. When the market falls everyone focus on risk and hence pause investing, that is the time you focus on returns.
Managing a portfolio of stocks, is not like shepherd managing a flock. Sometimes, you may have to let a sheep or two in the overall interest of the portfolio.
I can coach you to be a better shepherd
varadharajan vs
ckar.vsv@gmail.com
Manage Your Money, Better 