If you haven't followed Markets closely this year, then you would only know that Nifty is a bit down in 2013. You would have missed the entire story that the following pic says-
Yes, there has been a carnage (ok one-third carnage) in Mid Caps & Small Caps.
A lot of stocks are down more than 20% this year without any conclusive reason.
Is this fall justified?
Some will say Yes.... Mid Caps & Small Caps are more risky. And even after this fall, they are commanding higher PEs than Sensex & Nifty.
Some will say No... since Mid & Small Caps provide better growth opportunities.
My Take?
I don't know whether the fall is justified or not.
However, I know that market is throwing out the baby with the bath water. Some stocks deserve the fall that they are getting but not all. This flight to safety is giving a good chance to accumulate some high quality mid & small & micro & nano caps.
A number of stocks are now offering more than half of FD retuns & are priced at such a valuation which assumes that they will either go out of business soon or their earnings will fall big time & will never recover from there!!!
MacD's punchline comes to mind- "I'm Lovin' It"
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