Oct

29

I got a call today, wherein a large bull in India was quoted saying, "Victor Niederhoffer has written in his book, the best time to buy stocks is when brokerages are shutting down."

I tried recalling where the chair wrote that.

I assumed he has been quoted correctly, my conundrum is:

Indian equity indices are whiskers away from all time highs, that were seen five years ago. In between in 2011 too a re-test of the all time high had happened and marked dived 30% from there.

While retail brokerages are shutting down en-masse near the highs, domestic mutual fund AUMs have shrunk a tad with hardly any new net in-flows, Foreign Institutional Investors are net buyers.

A further divide on the conundrum:

Individual local investors are in despondency, on one hand. Institutional Global Investors are described in every segment of the market food chain as being complacent at the near high levels with such global & local macro concerns.

Descriptive sentiments are thus split wide open vertically between Individual / Retail/ Local despondency & institutional complacency.

Which way to tip the hat?


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