October 16, 2019

Nice thread on bull and bear markets

This small/midcap bear market is our 2nd most brutal in history. In 1992 you knew the Harshad was caught. In 2000 NASDAQ was bleeding & Ketan had been trapped. This time it was the system cracking - a box full of fire crackers catching fire. You don’t know which one bursts when!

Post the fall in 1992, EOUs, FMCG and software took over the leadership. Anything to do with ‘EOU’ was bid up. Post 2000 the large pharma companies like Dr Reddy’s starting moving and so did a lot of PSU divestment candidates.

Though the Govt. sold only a handful of PSUs the rally spread across the sector far and wide SCI, BEL, BEML, EIL, CONCOR & more were the shining stars till 2003. Companies that were debt free available at single digit P/Es with a dividend yield of 7% to 10% went up 10 to 30x.

Read more at https://threadreaderapp.com/thread/1184261729036861440.html

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