Hindsight, as the saying goes, is always 20/20. Readers would remember the absolutely torrid time the markets gave us in the last quarter of CY 2011 when a number of stocks fell as if there would be no tomorrow. So, I just pulled up a couple of my Posts dtd 24/11/2011 and 28/11/2011 in order to demonstrate the power of cyclical reversals both on the upside as well as downside. In the said Posts, some of the dazzling returns given by rate cyclicals were highlighted.
Readers might find it useful to jog their memories a bit by perusing these Posts, as under.
Remaining with the same theme, we also cannot forget the stupendous, though short lived rally that came thereafter, out of nowhere in Q1 of CY 2012 and gave almost surreal returns on the same beaten down rate sensitives. Readers may wish to recollect by reading the following
The short point I am trying to emphasise is that in case our call is that the rate cycle reversal is well and truly underway, then the kind of returns that one could get on rate sensitives hereon would be simply mind boggling and maybe next year this time we would be wistfully looking back in disbelief at an IVRCL currently at 45, or a GMR, GVK, LANCO sub 20 levels, or a SUZLON, HCC at 20 levels just to name a few.
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