Learn the Strategy of Stock Market from Anirudh Sethi in 2020

One of the questions many investors have been pondering is how they should be positioned in the so-called post-Covid period, as stocks continued to rise higher in recent months.

No-one can say something at this stage about where the pandemic is going and how long it will stop. We are in this pandemic for only six months and questions prevail. In the meantime, stock markets trended higher in hope that the worst of the outbreak could have been past us.

Investment is not a choice but rather a must. We earn to preserve our lifestyles but we need to invest in building our wealth. And with interest rates falling to zero, the value of your bank deposits against inflation would erode.

So how is one to position for a potential recovery?

"Stay diversified, have a spread of growth, cyclical and value stocks, India is one of our most preferred markets, in large part because of its under-performance," said Anirudh Sethi.

Stocks of companies with strong balance sheets, sound businesses, good management, proven strategies and which are leaders in their segments will be winners in the longer term. There are many beaten-down stocks of companies with strong balance sheets and good long-term growth prospects.

What the pandemic has taught us already?

If there is one thing we have learnt from this crisis, it is that cash is king. Don't invest every last dime, then.

Leave one quarter of your investible funds in cash. This can be used to buy assets opportunistically, from time to time. There will always be spells of panicky selling which can make that stock you've been eyeing suddenly attractive on a valuation basis.

Remember, this market will go through severe bouts of volatility. You must have the stomach and financial holding power to ride through the turbulence.

The world has been through a lot of crises though. It is just the most recent one. We are going to get out of this one too. But position yourself to recover.

Which sectors do you consider to be well-positioned and which are in tight spots?
Companies in the financial sector and Capital Goods are in the right place right now. We have promising outcomes for FMCG, Telecom and Pharmaceuticals, but some of that is already factored into the existing valuations.

Who is Anirudh Sethi?

Anirudh Sethi is the genius of the stock market who is the founder of Financial Occultist. Since completing his thesis, he was interested in the stock market since 1992. Sethi has completed his graduation, post-graduation and PhD in Human Psychology.

The human psychology education and study has developed measuring skills in the stock market. He had also initiated his work on technical analysis of the trade market way back in 1992.

And it was the new interest in the field of the stock market that many people didn’t know. Anirudh Sethi analyses international markets from indices, stocks, bullion, energy, forex and crypto. He is a trading coach and organizes online webinars and seminars for traders, with clients across the globe.

Having gained unbound knowledge after 28 years of experience now in the Indian stock market, he has written several books out of that. Sethi 's written several notable books include Trading Psychology, Baroda's Royal Family and Trading Psychology A to Z.