Stock market gets unattractive

History suggests both passive and active investors will struggle to make money

When markets ignore valuation, experienced investors start worrying.  India is now into one of those dizzying bull runs (so is the US). The Nifty is trading at a PE (price-earnings ratio) of 23, which is uncomfortably high. But, at least, the Nifty has travelled higher in the past. 

Other market indices are at unprecedented levels — the indices tracking small-caps, mid-caps and the ‘Junior’ are all trading at all-time highs in terms of valuations. In terms of pricelines, each of these is also near their respective all-time highs. 

It's hard to justify these valuations normally. However, there is one accounting