Multi-baggers are as fickle as the markets

After an investment phase comparable to a dream run, the markets are gradually settling down. The occasional bouts of fear and the regular capitulation seen in overvalued companies only keeps the excitement quotient alive. Even though most serious investors clearly realise that the party of 2017-18 is drawing to a close, few people have left the party. Nobody wants to be left out of any residual excitement. Investment performance over a shorter period looks ordinary. Red ink has started to mark mid-cap portfolios. An uneasy calm prevails over mid-caps, which have seen the most stellar investment performance in our market's history. The question on everybody's mind is when the trend will regain its mojo and create a resurgence in fallen stocks. To answer that, we should understand the genesis of the recent investment performance by mid-cap stocks that had stayed static for years and suddenly saw markets aggressively rerating them. The market perception altered dramatically over just a few quarters leading to a drastic gain in the stock prices of the

This article was originally published on July 05, 2018.