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Synopsis
Let’s accept the fact that we are likely to be dealing with volatility for the next four years. Both in the real world and in the global and Indian stock markets. As investors, one should and cannot stay away from stocks for so long. So, it’s best to figure out sectors and stocks which have a greater probability of either benefiting from this volatility in real business, or are better placed to deal with the changing world order. In India, it is the pharma sector that fits the bill. For a simple reason. While the Trump regime will make noises about tariffs on Indian pharma imports, the reality is that, given the poor state of the US healthcare system, it cannot afford to further increase its cost burden. So, forget the tariff tantrums. It is the pharma sector which will be able to duck future tariff bombs.
Here’s a lesson from history: For a long-term investor, buying in a correcting market is mostly an opportunity. The operative part, of course, is “long-term investor”, not people who check the value of their portfolio every evening. Of course, you have to be selective. Focus on a sector that is making a comeback. Why? Because when a sector catches the limelight for the first time, valuations are high and promoters tend to be more optimistic than
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