‘Almost everyone is now saying we are at bottom': X user Muthukrishnan Dhandapani flags market risks

Domestic benchmark indices, after a two-day gain, BSE Sensex and NSE Nifty dropped over 1 per cent each in early trade on Friday. Against this, a timely warning about investor optimism has surfaced. In a viral post on Thursday, X user Muthukrishnan Dhandapani cautioned market participants against rushing to deploy their cash reserves in hopes of a rapid recovery.

"Almost everyone is now saying we are at bottom and bull market is going to start," Dhandapani wrote in a recent post on X. He noted that while the investor community is naturally wired to be bullish, adding that it “is required to withstand the pain of bear markets.”

Dhandapani said “I've no ability to forecast. As on date, even geopolitical experts are clueless as to how this conflict would take further shape and what might be the consequences.”

Dhandapani highlighted that while the war could end very soon, as many hope, it could also stretch on for years. “The conflict can extend for many years too creating global economic crisis, high inflation and spiking of interest rates,” he said.
 

Because every move in the conflict is simply decided by the previous one, Dhandapani highlighted that even the leaders driving the war are clueless about their next steps. “In such an unknown territory, caution is better,” he said.

He advised that existing market investments and monthly SIPs are enough for now, urging investors not to get continuously excited about throwing their ‘safe money’ into the volatile markets.

Dhandapani said holding onto this safe money is exactly what gives investors the critical psychological strength needed to weather the current turbulence without disturbing their existing portfolios.

“No harm in reading forecasts. But don't take them seriously. Tomorrow, as always remain unknown and uncertain,” he said.