Continuing the Medication...!!

Suppose you are seriously ill since 2 years and are on medication. Your condition is also improving slightly. However, on your last doctor's visit, he says that he will continue your medication for the extended period. What would this mean to you and your family, that actually you have not recovered well and so accordingly is the doctor's advice.

However, instead of being concerned with this advice of the doctor, your family and friends started celebrating and became very cheerful.

Doesn't this sounds a little funny or strange...?

But that is exactly what the Global capital markets has done in last 18 odd hours since the US Fed maintained the pledge that it would keep the interest rates low for an "extended period". This could only mean that the FED believes that the economy is not completely back on tracks from the slump. But the overall mood in the global markets is really cheerful, with all the key benchmark indices being up by around 1-1.5%.

Hence, I would again as always suggest that the things are not as good as the media is putting in, the markets have already given a whopping over 110% plus returns since last one year and hence the upside potential is capped. So, be cautious...!!

There are two stocks I believe could be added to an investment portfolio with 2-3 yrs time horizon. BGR energy and Karuturi Global. I will shortly come up with a detailed analysis of the same.

Happy Investing..!!