SENSEX Valuation expensive on FY-16 EPS

Indian Stock Market has delivered exceptional return since the start of the calendar 2014 and rightly so based on expected lines. We got historical political mandate in May 2014 and the global liquidity situation has been very benign since then. But without proper consolidation and time correction (if not price correction) market is increasingly getting vulnerable for sudden sharp knocks.

Valuation is no longer attractive and good quality companies are trading at historically high valuation. Like I have always said, Market is a pendulum which keeps swinging back and forth between the state of overvaluation & undervaluation and never stay at fair valuation (center) for long. Right now markets are stretching towards the overvaluation. The more it stretches in that direction, sharper will be the retrenchment.

Want to succeed in investing? - Stop believing in God

Why only investing, if you want to succeed in anything you should stop relying on God for outcomes. Whether God exist or not, that's a controversial question but personally I started doing much better in all respect when I stopped praying for outcomes. 

My mother spends 4 hrs in prayer and since childhood I was also a strong believer in God and thought whatever is happening to me is because what god or fate has decided for me until one morning in 2000 when I went up at 4 A.M in the morning, just before my IIT entrance exam, for  a hawan (as suggested by my mother) to crack the exam. No wonder I couldn't secure even last rank in the prelim itself. Inside I knew I was not prepared and asked for support of god to help me pass the exam. I was blamed that without preparation even God doesen't help. I thought if I am fully prepared then why should I  ask the support of God. It's like asking  for wheel chair when your legs are absolutely fine.

When I started Investing in Stocks, my Mother started suggesting me the stones to wear, the days I should trade and above all the days I should not trade at all. I was even recommended stocks to buy based on my favorable stars. Though I occasionally followed her tip in the beginning out of self doubt but I was increasingly getting convinced that stocks in long terms move on fundamentals and in short term based on sentiments.