Investment Strategy: The RBI’s stance of calibrated tightening indicates that rate hikes are possible but not mandatory. As investors, it is important to capitalize on rising yields to structure a layered portfolio. The spread between the repo rate and the 10 Year Government Security is nearly 1.5%. This presents a…
The crack in US markets was long coming. Lest we forget, this is America’s longest bull run in history and their economic problems are far from over. So, what caused this euphoria? Liquidity has been at the core of America’s economic problems and solutions. For a decade, America has been…
The stock markets capitulated this week. The fears were largely overdone. The sharp dip in OMCs clearly indicates the symptom. The markets are clearly gripped by the fear of loss. And, investors dump every stock where they fear further loss. And the very risk aversion they display is causing huge…
Podcast Transcript: Clearly, our markets have walked into a crisis we could have avoided. It was in good measure… our own making. Too much liquidity chasing stocks had made markets way too expensive. But, investors kept pouring money into SIPs. And the markets refused to correct despite FII’s selling…
What would you ideally need to retire? A steady flow of income, a sizable corpus, and a sense of financial security. Imagine you saved consistently but invested predominantly in real estate. Upon retirement, you would find that while you were still well off you might be strapped for cash. Today,…
If an asset class is hitting multi-year lows, then we tend to move away from it. On the contrary, when an asset class is nearing multi-year highs, we see the most clamour for it. Investor behaviour tends to shun risk exactly when valuations are very much in favour. The current…
Janet Yellen took over as Fed Chair in February 2014 at which point she had already been with the Fed for a decade. Although no new financial crises occurred during her term, the job at hand was no less tricky. Yellen inherited the responsibility of reversing the quantitative easing…
Investor perception often gives unmistakable hints of things to come. When most investors believe a particular asset class or investment simply do no wrong, it actually would go wrong. The consensus is often the worst tool to make decisions. This is because it takes too much time to reach a…
At beginning of the year, NIFTY was at 4636. Today it is at 5664, up by nearly 22%. During this period we helped people turn around their existing mutual fund portfolios. If the indices rule higher, there is no need to worry. We can always sell unproductive funds and release…
Hi , I invest in stocks . I study businesses and scout around for good ones to put my money on’. The moment I am introduced I can see different reactions in people. Somehow, the stock market has this unique ability to make people reactive. In 1990, when I chose…
You have just finished doing 50 pushups and your trainer being ruthless orders another 50. Drenched in sweat and exhausted you don’t think you can do take one step further, leave alone do more push ups. But your trainer will not take “NO” for an answer. He keeps at it…
Picture an old-school person like your grandfather. Try and reminisce how he dealt with money. The money would be kept in a steel Safe-locker and he always knew exactly how much money he had in it. In the good Old days, bank deposits were the only investments for the middle…