Pritam Deuskar Wealthyvia - Practical lessons for investors
1. one should trade cyclical stocks only when one understands the start and end of cycles. Cyclical stocks peak in their prices not when their earnings peak out when expectations of earnings peak out. Understand how long the cycle usually lasts. According to Wealthyvia founder Pritam Deuskar When things start slightly positive cyclical stocks trade at high multiples of 40-50-60 Price to earn as earnings turn negative to slightly positive. When earnings growth comes up , stock prices increase with price to earnings dropping due to eps rise. This is exactly opposite in cyclical stocks than non cyclical regular ones 2. According to Pritam Deuskar Wealthyvia , MNC consumption and manufacturing companies command a premium and look as a safe zone when markets are in an uncertain phase. Mnc companies can raise capital at low rate debt in their western countries or from parent companies capital. Most of them have 75% promoters holding with hefty dividend payouts. The...