After 2 years of downside move markets have turned bullish post the corporate tax cut announcement. After which any kind of negative news like the lower GDP or even attacks on Iran’s Army boss, which was touted to be the beginning of 3rd World war by the media. Stock markets brushed off all the negative news. When negative news does not take the markets down, it is a clear indication that, all the downside is over for now.
The market is waiting for good news to come, which might take a little more time. Then it is going to be boom time.
Polarisation in the markets made investors along with fund managers and advisors get into pain. Now that is over, we can see the gains shifting from SENSEX to mid and small-cap segment.
Post corporate tax cut, SENSEX has moved up 2.5%, while Mid caps went up 4% and Small caps moved 10%. It is a good time to move money into equities, the next 2 years are going to be big gain years.