This is what i got from people who think about long term strategy.
Staying fully invested in expensive markets is the most dangerous thing to do with your money.
Since NSE started, every time when Nifty’s Price/Earnings ratio has gone above 22, the average returns of Nifty became negative over the next three years.
Nifty PE 3 year Returns
<14 - 152%
14-16 - 112%
16-18 - 79%
18-20 - 51%
20-22 - 21%
22-24 - 15%
24-26 - 32%
26-28 - 36%
28-30 - 40%
Current PE Ration - 22.02
You can see current P/E multiple of Nifty at NSE’s website
http://www.nseindia.com/content/indices/ind_pepbyield.htm
Experts, share your thoughts.