Small investors may skip new-age cos, cryptos

economictimes.indiatimes.com:

In the current market, there are a couple of facts that are even more worrisome. First, for crypto, there is no underlying asset; so if this is a mania then it's not even asset-backed. Second, millions of millennials have been drawn into crypto and markets for the first time. So they have till recently not seen or felt a bear market. There are optimists who believe that there will be no long-term bear market and corrections will be short-lived. There have been times in the market when irrational exuberance lasted so long that money managers talking rationally lost their jobs and some of them did not live long enough to see that their disbelief was justified.

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Coming back home, in recent times, many new-age stocks like

,

, Fino PB, PB Fintech, PayTM, Data Patterns, Latent View Analytics, etc, made their stock market debut. They have corrected and a few have dipped well below issue price. Foreign portfolio investors (FPIs) also participated enthusiastically in the IPOs with more than $11 billion getting invested in IPOs. It appears they sold their holdings in the secondary market of old established companies. Till some time back, by and large most IPOs performed well post listing and optimism kept feeding on itself. As per one study, Indian markets are at almost 85% premium to an average of 13 other emerging markets whereas historical premium has been around 20%. The digital revolution is unprecedented and there is no playbook to work out projections with any degree of accuracy. Therefore, their growth and earnings projections