One needs to strike a balance in a polarized market: Arindam Ghosh

In a chat with ET NOW, Arindam Ghosh, CEO, BlackRidge Capital Advisors, gives his outlook on the market trends. Excerpts:


ET Now: Is there merit in buying expensive concept stocks?

Arindam Ghosh: Without getting into stock specifics, our view is, in an environment where volatility will be extremely high, there are two strategies that can be adopted. In a relative return framework, the best strategy would be to try and hug the benchmark with a bit of overweight position on the defensives. If you have an absolute return strategy, then volatility will give you enough opportunities to make markets.

Moreover, the market is extremely polarised, so there will be pockets of deep undervaluation and some will be extremely expensive. Therefore, one needs to strike a balance between where one sees value, depending on the time horizon, investment strategy and objective being executed through one's portfolio.