Why You Should Be Buying This Dip! NIFTY-50 Crash
Global markets have been selling off since last week ever since the US non-farm payroll data for the month of July was released, which showed lower than expected job growth and unemployment rate in US rising to 4.3%. This sell off came despite the Fed Chairman giving the clearest possible signal in his most recent press conference that the Fed intends to start rate cuts in Sept’24. This pullback is essentially the market's way of telling the Fed that it's late, very late in cutting rates, and that it should have started cutting rates in Jul’24 itself!
I had predicted this sell-off in stocks in very very unambiguous terms in an earlier video published on 2 Jun’24, in which I had clearly indicated that any post-election rally in stocks will likely fizzle out in a matter of weeks, once bad news related to a weakening US economy starts to mount. This video is available at:
And here we are – exactly 9 weeks since I laid out my above-mentioned prediction, and the post-election rally seems to have all but evaporated, and the narrative of a multi-year bull run driven by the “India story” has very quickly given way to a more pessimistic outlook. And just as I was amongst the very few standing at the opposite end of the consensus view, predicting a quick demise of the post-election rally back in Jun’24, I once again fund myself at the opposite end of the consensus view prevailing right now, accordingly to which the on-going pullback in equity markets will only get worse from here. And that’s because I strongly believe the on-going pullback in stocks is temporary, that we will see a strong resumption in the rally that was on until very recently, and that the resumption will very likely coincide with the Fed starting to cut rates in September.
There has never been a time when a robust analytically driven rules-based approach was more critical, because only a rules-based approach can help navigate the ongoing and upcoming turbulence in equity markets without getting caught up in the clutter and noise generated as a result of the day-to-day wild swings in the markets
Do watch the below YouTube video on” Do watch the below YouTube video on “Why You Should Buy this F***ing Dip! NIFTY-50 Crash”
