The froth in small and midcaps space is there since quite a while. But we cannot wish away market froth and bubbles. They will finish their due course before bursting. And when that happens is anybody’s guess. And if you know how to ride them, the last phase of a bubble is actually when maximum money is made. (And also lost if caught in the storm on the wrong foot.)
Strategy has not changed much. I am largely fully invested, Only thing I do off and on is to book atleast partial profits in some positions where I feel stock price run up seems unsustainable.
Regarding parking space, these days a lot of options are available in the large cap high quality names. Stocks like ITC, HDFC Bank, Asian Paints, etc are in corrective phase and once these show first signs of a change in trend, these can be good parking space with potential of some upsides too .
@Shakti_Srivastava I usually do not exceed a number of 10 stocks in my portfolio. It’s only when I can spot some kind of sectoral cyclical plays that I increase this number to accomodate a basket of stocks from that particular sector. Just as some people are not comfortable with concentration, I am not too comfortable with diversification. Here there is no right or wrong. Depends on which style suits your temperament.
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