Despite the recent correction phase – though largely limited to select large-caps – we are still in a market where companies near bankruptcy are quoting at half billion market cap. Even at this point, finding stocks which have value is not easy – with the choice being between fairly priced and overpriced. Given prevailing sentiments, investors seem prone to buying a stock first and then looking at what business it is in. So it is important to go back to some of the basic principles of investing. Have more checks and balances before you buy a stock. And be clear about why you are buying the stock at this point. In short: As you stay bullish, be cautious – and selective.
