Extended bull run masked investing flaws, bred misplaced confidence: Shyam Sekhar

Market veteran Shyam Sekhar on Tuesday said the extended bull run post Covid-19 masked flaws in investing with misplaced confidence. In a post on X, the founder of ithoughtPMS, said the investor fear is taking away froth now, as the picture is getting clearer. 

He gave an example of one of his young clients from IT sector to conclude: “Young people are realising something is amiss in their investing and needs urgent remedy. There is hope. There is remedy too if the actions are timely.”

Sekhar said technology is only an enabler and not a solver, citing his client’s long-held view that tech would make investing so simple that anybody could do it. His entire investing was built on that belief, Sekhar said.

“When transacting became very simple, behaviour changed. Decision making gained confidence. The confidence became too stretched. Investing actually went all over the place. Risk management was oversimplified. Then, finally, tech threatened to disrupt his professional work. Now, he was wondering if he was okay. His confidence was suddenly running down,” he said. 

Elaborating the case, he said his client in 30s had his world view centred largely around his work life. Ironically, it was technology that is bothering him the most, Shekar said adding that life has come a full circle.

“The young man sitting before me spoke clearly and calmly. He said he was not able to handle the portfolio as it had become too unwieldy and grown too big for him to handle. He knew it needed help,” Shekar said.

The expert said a brokerage platform is like a straw. One can take anything through it. “But, its strength is carrying capacity. Nothing more. If you mistake a carrier for a solver, you just brought a problem into your life,” he said.