What is your sight? Garud drishti or Sarp drishti??

What is your sight? Eagle or Snake?

Our ancient scriptures have given a beautiful example of Garud drishti (Eagle) and Sarp (Snake) drishti

Lord Vishnu to which goddess Laxmi (wealth) is attracted is seen in 2 postures! One is seated on snake and one riding on Garud.

Garud and Snake drishti has any relevance in Investing?😑. Yes it has and that is why I am writing this blog.

Eagle can fly high and can have wider and helicopter view whereas Snake being a serpent can only see what is available at the eye ball level alias what is visible nearby.

I want to relate the analogy to the Investing. And believe me, it matches well 😄👍

Equity Investors are required to have Garud drishti – Long term view. That helps them to create huge wealth. But having said that, Sarp drishti is equally important. If one is seeing the pain in economy and corporate profitability growth, he must quickly reach out to his financial consultant and discuss about the strategy to take advantage of the markets.

Sapr drishti helps in re-aligning portfolio which will prove to be relevant to market in times to come. Here investor redeems some part of profits and takes gain home. In Gujarati we have saying “Nafo chopda par nahi, ghar ma aavo joeye” meaning profits should not lie in books alone, we must bring it in Bank also.

Garud and Sarp drishti is performed by every investor at the same time, therefore which sight to use and when to use it also important👍

Let’s take current situation, we are aware that world economies are going thru tremendous pain of Covid 19 related lockdown and disruptions but still equities are scaling newer highs. Only bright side is huge liquidity pumped in by central Banks. And another one could be TINA factor in assets. With Bonds at abysmally low yields and gold at historical highs, equity looks only place to be in. Properties across the world are still not viewed as better than equity. I don’t think another 3 yrs will be any good for house or office space. USA is seeing sharp increase in “For Sale” billboards outside apartments. Investors realised that property involves large sum of money, taxes, transaction cost and poor liquidity. Therefore equity will remain preferred choice. Its anybody’s guess, how long party in stock markets continues. Good part of data suggests that trading volumes have gone up from first time investors, retired people and home bound people who are taking trading as tool to kill time (Hope they don’t kill their wealth, in bargain). So new entrants are seeing rally in market and buying equities to create wealth. Whereas at the same juncture, Wise investors are reducing equity (Sapr drishti) and reallocating to equity in staggered fashion (use of Sapr drishti with eyes of Garud also).

In such a scenario, we are advising investors to reduce weight in equity and keep gun powder dry (Sarp drishti). Complete exit from equity can have consequences in any market cycles (Garud drishti).

Within equity allocation also, Investors put their money where the returns have been great in past few yrs. Such calls mostly turn out to be Sarp call. Few examples of Sapr drishti currently are as below. I am not suggesting that below aren’t Garud calls, but are certainly not good bet given the current valuations.

1)      US Tech companies

2)      Assured returns Insurance policies

3)      ETFs

4)      Large caps

5)      Healthcare sector

6)      Gold

7)      Debt funds

Do you know Garud calls for the next few years?? Do write to me @ wealthcarein@gmail.com or WhatsApp me @ 9833778887