“Almost all Old Money secrets can be traced to a single source: a longer-term outlook.” – Bill Bonner. The political leadership issue is slowly taking a decisive trend. Market leadership always evolves in anticipation of political trends. In that sense, the stock market has been way smarter in making…
Timidity prompted by past failures causes investors to miss the most important bull markets. Are the markets expensive now? Given that the SENSEX is very close to its all time high, investors tend to believe the case of markets being costly. But, the truth is that only parts of the…
Events and expectations lead to markets pricing every positive development in. Not too long ago, the rupee was battling to save itself from breaking the Rs.70 barrier. Exporters were making merry. The RBI was pulling out all stops to fight the fire and the government banned import of gold to…
Iwiz: The smart investor knows he can be fooled. The fool truly believes otherwise. It is exam time and households are seeing feverish activity. Tempers are running high and anxiety is showing a steep climb on the Y-axis while the exams run slowly on the X axis. Performance phobia is…
“In the short run, the market is a voting machine, but in the long run it is a weighing machine.”- Ben Graham What have a few opinion polls done to the Indian stock market? Is hope such a huge catalyst? Then what happens to the fundamentals. Let us face it.…
Investing is the intersection of economics and psychology.–Seth Klarman On women’s day, we thought it may be a good thing to let out a little secret. We did this little experiment in our office. Our research team has a majority of women who do the analytics & research support. Effectively,…
“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.” – Seth Klarman “Know what you own, and know why you own it.” Observing Indian investors allocate money into asset classes gives one the feeling that people are violating…
In investing, what is comfortable is rarely profitable. Party conversations are a great pointer of public mood. Evening after evening spent hearing people talk of their second apartment in the City suburb was a tortuous phase that lasted at least a couple of years. Then, we had six months…
Quick Edit: Every election makes psychologists out of equity investors. With every election, the tribe of arm chair experts is growing. We have fund managers meeting politicians to understand which way the tide is going. If only the politicians knew, they wouldn’t be doing what they do. Why waste…
“When will you turn bullish?” Posing this question to an informed fund manager drew a cool response. “When the FII’s sell”. This was a year ago. The interim period has seen quite the opposite with incessant selling by DII’s and matching buying by FII’s. The past few weeks have seen…
The RBI raised interest rates by 0.25%. Should that really be a worry? If so, for whom? The banks aren’t going to sit around without passing on the cost increase. In fact, they may first try not to raise their cost. So, the deposit rates may well stay where they…
Steroids are wonder drugs meant to pull things up with recipients. Putting steroids to work is often an easy option before physicians who see a need to pull someone up quickly from a difficult situation. But, the recipients should be ready to take the impact of steroids. Putting an economy…