Bull Run Blindness: A Word of Caution for Savvy Investors
2023 has been a whirlwind year for Indian markets. The Nifty zoomed past 20,000, marking a staggering 64.3% CAGR return for the Nifty Microcap 250 alone. While headlines scream "bull rally," a whisper of caution is warranted before we lose ourselves in the euphoria.
While celebrating success is essential, ignoring potential pitfalls can be disastrous. We've seen this movie before – rapid surges often precede sharp corrections. Remember the dot-com bubble burst of 2000? Or the 2008 financial crisis? Both followed periods of exuberant optimism, only to leave investors reeling.
So, why should we be watchful now? Here are a few reasons: