Investment Ideas
Synopsis
The probability of a correction if there is no positive development on the India-US trade deal is quite high. The fact, however, remains that the market has recovered each time there is some such crisis, and it will do so this time as well. But, as valuations are high at this point, the pace and breadth of recovery may differ when compared to the earlier corrections. So, just focus on stocks with a high probability of making it to the list that will lead the first wave of recovery. Those will be stocks where the businesses are on the right path and the runway for growth is clearly visible. Also, where the management has a track record.
What will happen to the market if there is no solution achieved by August 27 and the additional 25% Trump tariff kicks in? The probability is that we will see higher volatility. Now, the question most investors would be grappling with would be: Will the market stay volatile today, tomorrow, or for that matter the whole of August and September? And, will it also correct further? Maybe, or maybe not. The fact is that no one can provide an accurate
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