market now offering 10:1 odds

m

with a 12 % crash the market now offers a 10:1 odds (less that 10 % loss ) on a long term basis.

nse website gives the 5 year daily pe from jan 99 to till date. using that data shows that the nse index has gone below a pe of 12.9 (current pe ) only 10 % of the time.

although this may not hold true going forward , the risk reward is now favourable for a rational and patient investor. with the current risk free rates at 6 % and high ROE , the market is in an attractive zone

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