Being a bull, Shankar Shankar claimed that he has always expressed the warning that small-cap stocks are far more likely to result in financial loss than large-cap stocks.
shankar sharma said, When dealing with smallcap stocks, investors shouldn’t be blind bulls, according to market veteran Shankar Sharma. Instead, they should be cautious and risk averse. He forewarned that blind bulls would eventually be killed, especially in the smallcap pack. The founder of GQuant Investech stated that there is a significant discrepancy between the performance of large-cap indices and the broader market, which raises concerns about the sustainability of the system.
- Sensex has increased 10.47% so far this year, while Smallcap index has increased 28.91%.
- Sharma claimed that smallcaps’ returns, particularly over the past year, exceeded his expectations.
- The performance gap between largecaps and the broader market raises concerns about sustainability.
- According to Shankar Sharma, one should be ready for relatively small returns following such tremendous gains.
shankar sharma said, When dealing with smallcap stocks, investors shouldn’t be blind bulls, according to market veteran Shankar Sharma. Instead, they should be cautious and risk averse. He forewarned that blind bulls would eventually be killed, especially in the smallcap pack. The founder of GQuant Investech stated that there is a significant discrepancy between the performance of large-cap indices and the broader market, which raises concerns about the sustainability of the system.
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Shankar Sharma, who has been a proponent of small-cap companies for the past two and a half years, claimed that small-cap investors who managed their risk well and diversified their holdings during the previous two years may have had returns of between 30 and 50 percent per year.
Shankar Sharma statement in interview
“I can tell you from my experience that such kinds of explosive returns are not possible every year when you double your money in two years. Let’s be really clear about this, Sharma stated in interview. Shankar Sharma claimed that smallcaps’ returns, particularly over the past year, exceeded his expectations. He remarked that after such returns, one should be ready for rather small returns.
According to data, the Sensex has increased 10.47% so far this year. During the same time frame, the BSE Smallcap index increased by 28.91%, outperforming by 18.44 percentage points. Sharma claimed that while being a bull, he has always warned that small-cap stocks are much more likely to cause financial losses than large-cap stocks. Sharma said smallcap exits are quite challenging when they are declining because of the baffling diversity and breadth of trading limitations enforced by stock exchanges like ASM and GSM.
You can leave as they start to rise. When they are falling, you can’t get out,” Shankar Sharma said, adding that “small caps shouldn’t be relished on papers. On the ascent, kindly periodically convert the paper wealth to actual wealth.
Shankar Sharma stated that while it is wise for an investor to take money off the table, it is equally crucial not to rush to acquire something new. Although Shankar is a bull, he claims to have always advised investors to exercise prudence when trading in small-cap stocks rather than large-cap ones.
Disclaimer: HNN does not offer investment advice and only provides stock market news for informative reasons. Before making any investing decisions, readers are urged to seek the advice of a licensed financial advisor.
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