{"id":1141,"date":"2024-07-12T13:19:03","date_gmt":"2024-07-12T13:19:03","guid":{"rendered":"https:\/\/cedcapital.in\/?p=1141"},"modified":"2024-07-12T13:19:03","modified_gmt":"2024-07-12T13:19:03","slug":"underperforming-in-a-rising-market","status":"publish","type":"post","link":"https:\/\/cedcapital.in\/?p=1141","title":{"rendered":"Underperforming in a rising market"},"content":{"rendered":"<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">One needs to guard against the desire to be a top performer at all times. Markets are not always rational and often go through bubbles. The most popular sectors during bubbles trade at exorbitant valuations and see a rise in their weights in benchmark indices. A top quartile performance during those times can be obtained only by going overweight on popular sectors. And what\u2019s popular is seldom cheap &#8211; tech in 1999, infra and real estate in 2007, quality\/ growth in 2020 and PSUs\/Defense\/ Railways in 2024. <\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\"><strong>Other things remaining constant, an<\/strong> <strong>underperformance versus the benchmark is a <u>leading indicator<\/u> of risk reduction during buoyant times<\/strong>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One needs to guard against the desire to be a top performer at all times. Markets are not always rational and often go through bubbles. The most popular sectors during bubbles trade at exorbitant valuations and see a rise in their weights in benchmark indices. A top quartile performance during those times can be obtained [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-1141","post","type-post","status-publish","format-standard","hentry","category-market-cycles"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1141"}],"version-history":[{"count":3,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1141\/revisions"}],"predecessor-version":[{"id":1144,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1141\/revisions\/1144"}],"wp:attachment":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}