Had a detailed chat about the current state of markets, valuations and Gold with the folks at NDTV Profit
💡 Despite the 15-20% correction since October, why markets are still expensive, especially the mid and small caps, and to keep return expectations low for the next 12-18 months
💡At $15B, FII selling in just the first 3 months of 2025 is the 2nd highest in any calendar year since 1999
💡There’s some mean-reversion happening with sectors like Auto, Realty, and Energy that rose the most since the pandemic lows of 2020 have seen the most correction
💡Banks are probably the one sector currently with reasonable valuation versus long-term trends currently
💡Also, Gold breaking $3,000 / ounce recently means that since the 1970s, it has delivered double-digit annualised returns to Indian investors, but not without some intermediate pain.
