I understand that your style of investing is growth and in this environment of risk-on and high liquidity, this style is giving fast breakouts. How do you see this style working out when there is a risk-off environment and bearish trends?
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Surge Capital
Aug 20
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Hello Sir,
Growth is purely an element of preference on what kind of stocks we prefer.
Eventual returns over a medium-long term period would be an outcome of what sort of risk:reward setups we bet on and how we allocate capital across these various risk:reward setups.
And this for us would not change based on market environment; obviously in certain market environment it would be relatively easier to get the kind of setups we want and in some environment it would be difficult and thus we might not end up being able to allocate as much capital as easily in those environments.
If I were to work with the analogy that you have made, then we would not be 70%…
I understand that your style of investing is growth and in this environment of risk-on and high liquidity, this style is giving fast breakouts. How do you see this style working out when there is a risk-off environment and bearish trends?