April 11, 2023

Entering a stock at peak valuation? – 5 questions to ask

N V Chandrachoodamani / Stocks, Categories, Markets / April 11, 2023

When markets make merry, many stocks have seemingly compelling stories even for entering at peak valuation. And the market is fine with stretched valuations to accommodate such stories. In other words, every market-favoured stock appears to scream – buy me at any price.

But when challenges emerge, the same market starts reacting so sharply that investors who bought into the story midway start making losses. Yes, there isn’t a bigger disaster for stock market investors than earnings and PE multiples contracting together.

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April 11, 2023

Entering a stock at peak valuation? – 5 questions to ask

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