NEW DELHI: It seems investors are losing hope of making a big buck in Bitcoin and other cryptocurrencies and have become wary of the record high stock prices, as their hunt for ‘cheap stocks’ has been on the rise in the past few weeks. Google trends for the last 12 months show readers searching for the term ‘cheap stocks’ hit a peak this week, even as searches related to ‘gold’ and ‘Bitcoin’ have taken a back seat. Search for ‘Bitcoin’ peaked in the week of May 16-22 and has been on a downtrend since. The search value stood at 18 this past week.Google scales search interest over time from zero to 100 score. A score of 50 suggests the term is half as popular as before, while a zero score means there was not enough data for the term. 86060020For Dogecoin, this value has fallen to 7 against a peak of 100 in the May 9-15 week. Search for gold has been down since March. Solana, a cryptocurrency that rallied 450 per cent in a month, saw interest peak out last week. Search for ‘fixed deposit rates’ has also taken a hit. Even search for ‘stocks’, ‘penny stocks’, ‘stock ideas’, ‘IPOs’ and ‘new IPOs’, ‘GMP’ and ‘grey market premium’ have fallen of late, reflecting a drop in investor sentiment in the primary market after some of the recent issues disappointed in terms of listing gains. Nifty50 currently trades at a 12-month forward P/E of 21.8 times, which is at 15 per cent premium to its long-term averages. In price-to-book value terms, at 3.3 times, it is trading at 28 per cent premium to its historical average. India’s market capitalisation-to-GDP ratio has also hit 111 per cent on estimated FY22 GDP numbers, above its long-term average of 79 per cent. As this rapid price surge took stock values to overbought levels, the rise in Google search for ‘cheap stocks’ reflected a lack of choice and confusion among investors as to where they can park their money.
Read more: economictimes.indiatimes.com