We will start the topic by asking the question that should we invest in today’s market? Whether we should follow Michael Burry pessimistic approach or believe in investors like Cathie Wood Optimistic prediction about stock market? Currently in the context of Indian economy we are hitting all time high in stock market which is trading above 17500. The multiple of earnings that Indian stocks are trading at higher than its been historically, all this is happening post Covid and everyone of us is scared that on the one hand the virus is still spreading through the world and on the other side of the equation we have stock market which is not going down. Investors like Michael Burry who is well known for predicting 2008’s Housing Bubble, warning people about stock market crash very soon by basing their decisions on analyzing metrics like Market Cap to GDP ratio. What is Market Cap to GDP Ratio? It is used to evaluate whether a particular given market is accurately valued in accord
Comments
Post a Comment