When buying a stock, ask yourself some questions. Why am I buying this particular stock? What will make me sell the stock – or when? Clarity on these questions will probably lead to better returns. These questions are important at a time when valuations are not your friend and you are thinking of increasing exposure to equities. Why are we discussing this? For a simple reason. There are times when, despite high valuations, the market keeps rising. Our assumption is that a large part of the negative news has been built into prices, and over the next few weeks the market will make an attempt to move upward once again. So, while being bullish, be selective.
