Should you change asset allocation based on the Nifty PE ratio?
The Nifty PE ratios are an indicator of market valuations. And we have seen that crashes have happened when the Nifty PE is at 27-28 times, and that investing when Nifty PE is below average results in stronger long-term return. If this is the case, can I use the Nifty PE levels to decide asset allocation levels to book profit at the right times?