"A market is the combined behavior of thousands of people responding to information, misinformation, and whim." - Kenneth Chang Economic activities are back to pre-covid era. Profits are rising, reflected in lowering P/E multiple. Tax collection, power consumption etc. are rising. And above all market is flush with liquidity, thanks to lower interest rates and money thrown into market by many central banks. So, markets have all the reasons to rise high but why should I be cautious. It’s not that only economic matters affect the markets. Socio-politico matters also have deep impact on markets in short to medium term. Because unstable politico-socio situation in the economy dissuades economic actors to work freely. At the moment following socio-politico and economical events ask us to be cautious on stock markets: Afghan Developments & China-Pak Nexus   Third Wave of Corona   Union Budget LIC’s IPO Corporate Results Central Bank’s Monetary Policy Let’s analyse them