That’s the headline and also the suggested action.
Markets (as seen through Sensex and Nifty) are already at or close to all time highs.
Does it mean you should sell? No.
But, it is time to be cautious and rebalance.
To get a sense on what I am saying, see the Asset Allocation Indicator here.
What does it mean to rebalance? If you have significant new cash inflows, divert them to the assets that now have lower than original weightage. Or, sell the overweight assets to buy the underweight ones. One of the best ways to benefit from the vagaries of the market.
If you are a direct stocks investor, be mindful of the price you pay.
If you are coming into equity (or even fixed income) market linked products for the first time, you are likely to have a sense of FOMO and go all in now. Well, I repeat, be cautious. Start slow and increase over time. It’s an effort that is likely to go into dozens of years and you don’t want to drop out right at the beginning.