Investment Strategy: As we move into a rising interest rate scenario, the focus shifts to high-quality low-volatility investments. Our strategy has been to construct a layered portfolio by locking into high-quality investments at different yields. At this juncture, short-term AAA investments make the most sense. Contact us if you would…
Recency bias hurts the most when a bull market ends. We tend to buy investment ideas which did very well in the recent past. This happens across the board. The stocks in favour remain the ones which hit recent highs and gained the most in the past year. We tend…
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…
Investors are always so busy celebrating market highs that they miss the peak out moment. So, most investors tend to wake up long after the market corrects. The only way to ensure one is alert to the market highs is to follow an active-passive approach that is dynamic. This requires…
In good years, defensive investors have to be content with the KNOWLEDGE that their gains, although perhaps less than maximal, were achieved with risk protection in place, even though it turned out to be not needed. – Howard Marks Every investor scrutinizes the relationship between risk and…
The power of prescience is not something that is easy to practice in our investing. Knowing something in advance can be unfair advantage if it is from knowledgeable sources. So being fair and prescient at the same time is very important. But, there always is the option to independently anticipate what…
The purpose of monetary policy is to manage inflation, facilitate growth, and regulate credit in the economy. The RBI’s Monetary Policy Committee (MPC) has a clear mandate to target inflation and maintain it around 4%. In terms of bond markets, 2017 and 2018 are like chalk and cheese. 2017 witnessed…