{"id":2982,"date":"2023-02-07T12:38:00","date_gmt":"2023-02-07T12:38:00","guid":{"rendered":"https:\/\/rakshithpai.com\/?p=2982"},"modified":"2023-02-08T14:54:53","modified_gmt":"2023-02-08T14:54:53","slug":"stock-market-bubble","status":"publish","type":"post","link":"https:\/\/rakshithpai.com\/stock-market-bubble\/","title":{"rendered":"Current Market condition! Bubble in Small &#038; Midcaps?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662dd1e9780c2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\" style='display:none' id=\"ez-toc-cssicon-toggle-item-662dd1e9780c2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Introduction\" title=\"Introduction:\">Introduction:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#How_can_one_say_that_the_market_is_overvalued\" title=\"How can one say that the market is overvalued?\">How can one say that the market is overvalued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Does_this_logic_apply_to_all_classes_of_the_market\" title=\"Does this logic apply to all classes of the market?\">Does this logic apply to all classes of the market?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Large_Cap_or_Blue_chip_companies\" title=\"Large Cap or Blue chip companies:\">Large Cap or Blue chip companies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Mid-Cap_companies\" title=\"Mid-Cap companies:\">Mid-Cap companies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Small-Cap_companies\" title=\"Small-Cap companies:\">Small-Cap companies:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Update_October_2021\" title=\"Update October 2021:\">Update October 2021:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Update_February_2023\" title=\"Update February 2023:\">Update February 2023:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#For_more_information_check_our_YouTube_video\" title=\" For more information, check our YouTube video: \"> For more information, check our YouTube video: <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/rakshithpai.com\/stock-market-bubble\/#Also_read\" title=\"Also read:\">Also read:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Investing in Equity is extremely important for one to not only safeguard your wealth against the ill effects of inflation but also to grow wealth over time.<\/strong><\/p>\n\n\n\n<p>But, before investing in Equities, one must define and decide what kind of investor he\/she is. Here, we are trying to understand our risk and return perspective and our current financial situation. Now, what&#8217;s a better way to understand ourselves than by way of diversifying? For more information about <a href=\"https:\/\/rakshithpai.com\/how-to-diversify-stock-portfolio\/\"><strong>&#8220;How to Diversify your Stock Portfolio?&#8221;<\/strong><\/a> <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/rakshithpai.com\/how-to-diversify-stock-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE!<\/a><\/span><\/strong><\/p>\n\n\n\n<p>It is crucial to diversify your portfolio and to determine the proportion of equity, debt, gold, and international fund you hold in your portfolio. This way, you\u2019ll decide your risk and return probability by allocating your investments to various assets.<\/p>\n\n\n\n<p><strong>Generally, if you are a young investor, say aged between 20 &#8211; 40 with little debt, your equity component should be greater, say 70-80%.<\/strong> As you age, your equity holdings should eventually decrease and your debt such as bond holdings should increase. Around 5-10% should be invested in gold and overseas funds, respectively.<\/p>\n\n\n\n<ul>\n<li>Those in your <strong>20&#8217;s<\/strong> check this article. <a href=\"https:\/\/rakshithpai.com\/investing-in-your-20s\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span style=\"text-decoration: underline;\">CLICK HERE!<\/span><\/strong><\/a><\/li>\n\n\n\n<li>Those in your <strong>30&#8217;s <\/strong>check this article. <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/rakshithpai.com\/investing-in-your-30s\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE!<\/a><\/span><\/strong> <\/li>\n<\/ul>\n\n\n\n<p><strong>Experts believe that this isn\u2019t the best time to aggressively invest in Indian Equities. The reason being they are overvalued. So, in this article, you\u2019ll understand the current market condition better.<\/strong><\/p>\n\n\n\n<p>So, it is suggested to have other asset classes in investment to heed against Equity losses if the Stock Market goes bearish hereon.<\/p>\n\n\n\n<p>To know in brief about all the asset classes available for Indian Investors, check this article &#8211; <strong><a href=\"https:\/\/rakshithpai.com\/best-investment-plans-india-middle-class\/\">&#8220;Best Investment Plans in India for Middle Class 2021&#8221;<\/a><\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/zerodha.com\/open-account?c=PR4768\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Zerodha Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_can_one_say_that_the_market_is_overvalued\"><\/span><strong>How can one say that the market is overvalued?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We see whether the market is valued right based on the index P\/E trailing rate. Thus, when we say the market is hovering above 40 or 50 P\/E, we mean that the companies in the Indian stock market are trading at such rates with lower earnings hence giving over 40 &#8211; 50 P\/E. Which isn\u2019t a good sight.<\/p>\n\n\n\n<p>But, <strong>Price to Earnings is just a present forecast that clearly omits the future growth aspects<\/strong>. And, when our economic estimates indicate that now is a favorable time for real economic growth. And, it is predicted to make a big comeback in 2022 and 2023, restoring calmness to the equity market and preserving its premium pricing.<\/p>\n\n\n\n<p>This means, there is growth! <strong>With the growth in the company\u2019s sales and earnings, the growth aspect will factor into the high-priced stocks.<\/strong> Meaning, if a company is valued at a high P\/E of 50 and is giving good quarterly figures. Then, in the coming days, due to an increase in its earnings, the P\/E figures will drop down. So, <strong>concentrate on earnings and growth.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_this_logic_apply_to_all_classes_of_the_market\"><\/span><strong>Does this logic apply to all classes of the market?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>We have segregated the market into 3 different classes.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Large_Cap_or_Blue_chip_companies\"><\/span><strong>Large Cap or Blue chip companies<\/strong>:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These companies are valued at over 1 lakh crore in market cap. These are Growth-oriented companies. They truly define where the market goes. Up or down, the blame is on them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mid-Cap_companies\"><\/span><strong>Mid-Cap companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These companies are valued between 10,000 crores to 1 lakh crore in market cap. They have the capability to become the next Nifty 50 or Sensex 30 company. The term \u201cFuture multi-bagger\u201d companies are usually taken from here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Small-Cap_companies\"><\/span><strong>Small-Cap companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These companies are valued at less than 10,000 crores in market cap. Here, we have small companies that try to become the next mid-cap and then the large-cap too. You can also make a sub-category for small caps known as \u201cMicrocaps\u201d. They are those under a 1000 crore market cap.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Update_October_2021\"><\/span><strong>Update October 2021:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Now, the current situation where the market is overvalued comes especially from those under Midcap and small-cap companies.<\/strong><\/p>\n\n\n\n<p>It\u2019s not new to say that small and mid-cap companies have rallied very well during the post covid bull run. But, it\u2019s this rally that is creating an issue now. <strong>In&nbsp;comparison&nbsp;to&nbsp;Nifty&#8217;s&nbsp;13%&nbsp;increase&nbsp;in&nbsp;2021,&nbsp;the&nbsp;Nifty&nbsp;Midcap&nbsp;50&nbsp;index&nbsp;has&nbsp;gained&nbsp;27%.&nbsp;The Nifty smallcap 50 indexes, on the other hand, have increased 35% thus far.<\/strong> The surge is broad-based, as both midcaps and smallcap stocks are up. Indeed, midcap and small-cap stocks have beaten the Nifty by a wide margin.<\/p>\n\n\n\n<p>The market is in the overvalued zone if you consider Mr. Warren Buffett&#8217;s &#8220;Market cap to GDP ratio&#8221; as a base of analysis. The said ratio is hovering way over 100 for a long time and this has been a sign of concern for Value investors.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/zerodha.com\/open-account?c=PR4768\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Zerodha Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Unlike any large-cap companies that are known to grow over and above the country&#8217;s real GDP rate. The small and mid-caps usually lag behind, be it due to peer competition, economic factors, financial issues, or others.<\/strong> And, when these companies are valued highly, and when they are not able to live up to their expectation in terms of earnings, sooner or later, the market will notice their high valuation and correct them!<\/p>\n\n\n\n<p>Now, it\u2019s not that these corrections come only in small and mid-cap spaces. But, as said earlier, if the market in its entirety corrects and the index is down then it affects the large-cap companies more than those of small and mid-caps.<\/p>\n\n\n\n<p>But, if we are seeing a bubble-kind scenario in the small and mid-cap space. Like the current situation. Then, it is suggested to take a step back. Look at our portfolio and see what companies are valued high and will the valuation sustain.&nbsp;<\/p>\n\n\n\n<p>As I said,<strong> a high valuation in a large-cap company with high growth potential is not the same as a high valuation in any small and mid-cap company with high growth potential. <\/strong>Because the issues and difficulties faced by large-cap companies are those that the company may be able to handle but this isn\u2019t the case under those small and mid-cap companies.&nbsp;&nbsp;<\/p>\n\n\n\n<p>And, when we see that the entire rally has been predominantly at small and mid-cap space. It is the right time to re-check and reevaluate your holdings.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Update_February_2023\"><\/span><strong>Update February 2023:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When compared, the long-term returns of mid-caps have been superior to those of large-caps, and those of small-cap companies (those that consistently perform better than their peers) tend to give astronomical returns far exceeding those of mid- and large-cap companies. Even after accounting for the inherent volatility in these returns, this relative outperformance persists. This highlights the importance of a young investor&#8217;s portfolio having good exposure to mid- and small-cap stocks.<\/p>\n\n\n\n<p><strong>There is a cyclical trend in the relative performance of mid-caps compared to large-caps. Cyclical swings around the trend line have varying durations and magnitudes, making it hard to match an exact pattern.<\/strong><\/p>\n\n\n\n<p>Having said that, we must also consider the current economic situation. With the global economies either emerging from or still in a state of recession and interest rates at their highest in over two years, it is not advised to invest in small and midcap companies. especially if one wishes to go overboard on them.<\/p>\n\n\n\n<p>Investors can instead invest in well-performing mid- and small-cap equities in a staggered manner over a span of 2 to 4 quarters. <strong>Let the companies in these segments recover from the credit shock and market acceptability. Let the companies show growth in line with its pre covid figures (adjusted with growth).<\/strong> Until then, do not go overweight on risky investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Before the conclusion. I give 2 pieces of advice<\/strong>:<\/p>\n\n\n\n<ol>\n<li>Listen to Mr. John Bogle, the Founder of &#8220;Vanguard&#8221;. He says, <strong>\u201cNever, ever, ever get out of the market!\u201d. <\/strong>It is proven that those who stay in the ups and downs of the Stock Market make much more wealth than those who try to &#8220;Time the Market&#8221;. <\/li>\n\n\n\n<li><strong>Overvaluation in Mid and small-cap space is real!<\/strong> Check your portfolio and if need be, consider trimming it down. Ask your financial advisor for more information.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>So, what to do? Should we stay invested or book profit from time to time or be aggressive and invest further more into the market or be feared of the raging bull and book out the entire portfolio?<\/p>\n\n\n\n<p>Well, there&#8217;s no straight answer. It all depends on you and your current Financial &amp; emotional intelligence. But, all I can say is that no matter what your decision in this regard is, see to it that the above 2 points are considered.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_more_information_check_our_YouTube_video\"><\/span><strong> For more information, check our YouTube video: <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe loading=\"lazy\" title=\"How to approach current Market condition? Bubble in Small &amp; Mid cap companies!\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/USkz29xY_XM?start=16&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/zerodha.com\/open-account?c=PR4768\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Zerodha Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p> <strong><strong>Disclaimer: <\/strong><\/strong>All the information on this website is published in good faith and for general information purposes only.   <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Also_read\"><\/span><strong>Also read:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/rakshithpai.com\/sectoral-allocation-market-correction\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sectoral Allocation Contributes to Market Correction!<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/types-of-personal-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\">Five (5) Types Of Personal Loans And Their Feature You Must Know!<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/benchmark-vs-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">Use Benchmarks to Measure Portfolio Performance<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/financial-ratios-help-budgeting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Five (5) Financial Ratios To Help With Our Budgeting;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/union-budget-impact-on-various-sectors\/\" target=\"_blank\" rel=\"noreferrer noopener\">Budget 2023 &amp; Its Impact On Various Sectors:<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Investing in Equity is extremely important for one to not only safeguard your wealth against the ill effects of inflation but also to grow wealth over time. But, before investing in Equities, one must define and decide what kind of investor he\/she is. Here, we are trying to understand our risk and return perspective [&hellip;]<\/p>\n<div class='heateor_sss_sharing_container heateor_sss_vertical_sharing heateor_sss_bottom_sharing' style='width:44px;right: -10px;top: 100px;background-color: Dark Blue' data-heateor-sss-href='https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/2982'><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F2982\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" style=\"background-color:#0765FE;width:40px;height:40px;margin:0;display:inline-block;opacity:1;float:left;font-size:32px;box-shadow:none;display:inline-block;font-size:16px;padding:0 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Bubble in Small &#038; Midcaps?"}]},{"@type":"WebSite","@id":"https:\/\/rakshithpai.com\/#website","url":"https:\/\/rakshithpai.com\/","name":"","description":"Save - Invest - Repeat","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/rakshithpai.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/rakshithpai.com\/#\/schema\/person\/5a10929466befdcdb3013e5341aeb693","name":"Rakshith Pai","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/rakshithpai.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/34b7459182e8fb8b80ca20098eb1e8a9?s=96&d=mm&r=g","caption":"Rakshith Pai"},"description":"An Investor, Entrepreneur by profession, and an Economist (Monetarist) by passion. Professional Investor in Equities and other assets. Here to spread the concept of \u201cSane Investing\u201d.","sameAs":["https:\/\/rakshithpai.com","https:\/\/www.facebook.com\/Iam.Mrpai","https:\/\/www.instagram.com\/iam_mrpai","https:\/\/www.linkedin.com\/in\/iam-mrpai","https:\/\/in.pinterest.com\/Iam_MrPai","https:\/\/x.com\/Iam_MrPai","https:\/\/www.youtube.com\/channel\/UC3vfc8G1sysZleCAKbytRFQ?view_as=subscriber"],"url":"https:\/\/rakshithpai.com\/author\/mrpai27\/"}]}},"uagb_featured_image_src":{"full":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",1200,675,false],"thumbnail":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps-150x150.jpg",150,150,true],"medium":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps-300x169.jpg",300,169,true],"medium_large":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps-768x432.jpg",768,432,true],"large":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",1200,675,false],"2048x2048":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",1200,675,false],"web-stories-poster-portrait":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",640,360,false],"web-stories-publisher-logo":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",96,54,false],"web-stories-thumbnail":["https:\/\/rakshithpai.com\/wp-content\/uploads\/2021\/09\/Current-Market-condition-Bubble-in-Small-Midcaps.jpg",150,84,false]},"uagb_author_info":{"display_name":"Rakshith Pai","author_link":"https:\/\/rakshithpai.com\/author\/mrpai27\/"},"uagb_comment_info":0,"uagb_excerpt":"Introduction: Investing in Equity is extremely important for one to not only safeguard your wealth against the ill effects of inflation but also to grow wealth over time. But, before investing in Equities, one must define and decide what kind of investor he\/she is. Here, we are trying to understand our risk and return perspective&hellip;","_links":{"self":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/2982"}],"collection":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/comments?post=2982"}],"version-history":[{"count":6,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/2982\/revisions"}],"predecessor-version":[{"id":7534,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/2982\/revisions\/7534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/media\/2984"}],"wp:attachment":[{"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/media?parent=2982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/categories?post=2982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/tags?post=2982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}