There is something about how retail investors measure performance. First, they anchor performance to their own expectations. Secondly, they want their whole portfolio to do as well as the market’s best performing fund. Finally, they believe that their portfolio performance should be independent of the market’s. You will notice that…
The rate hike in US finally happened. As an event that was long expected and widely speculated, it didn’t carry any surprise element. Now that the event is behind, markets will need to focus on how global investors reset their emerging market allocations for 2017. Usually, these allocations start showing in January’s FII…
The Math of Demonetisation is slowly emerging. Money mostly is finding its way to the bank. The banking system seems to be coming under the scanner for helping cash hoarders launder money. This is something we will hear more about. Consumption is slowing. Indirect Tax collections are likely to follow suit. Service tax will…
Demonetisation became the side story on Tuesday evening. The real story was reported in almost invisible columns in the dailies on Wednesday. What are we talking about? We are talking to the most deterrent tax law passed in our nation’s history. The Government amended the taxes related to concealed income.…
The economy is set to slow down on the consumption side. Clearly, the financial results for the third quarter will be nothing to write home about. It is clear that the news flows will be bad in the coming weeks. The markets seem to be taking a stoic view of…
“Sell in December and go away” is a popular slogan among global investors. Seasonality in stock markets may defeat all rationality. Yet, there is no denying its existence.The difference is that FII’s are advancing their selling by a month. The reasons are both local and global. The rate hike in USA…
Equity investors are most unlikely to be keen followers of bond markets. Even when their equity investments benefit greatly from events in the bond market, equity investors tend to not follow the interconnect closely. Bottom-up investing is a convenient excuse to say ” I don’t follow the economic macros”. I…
The cash call is the most difficult thing for an investor to take. To leave a party where the excitement soars endlessly is more than just difficult. It is impossible. To achieve the impossible, one has to rise above the ordinary. To sell when everybody else around you talks only of buying…
Diwali brings special cheer to the stock market. The deeper connect with the auspicious day, the opening of the new books by large sections of investors (though it has become more symbolic than anything else) and the association of the mahurat with good tidings make the day special to Indian…
What should you reward or recognize an advisor for? Poll investors and you will get an overwhelming verdict favoring returns. Most investors believe the only reason they need an advisor is to give them more returns which they dont have the time to find themselves. The advisor is meant only…
We have been bombarded over the past few weeks by the billion-dollar sale days from e-commerce sites of all hues. We were induced by these sales into buying even what we don’t need. And, people were so enticed by the discounts that they were willing to buy more than they…
Investors see the same news, read the same newspapers, look up to the same icons and respect the same blue chips. The markets present the same opportunity to all investors. Information is freely available to all investors. Yet, why do just a small minority get it right while the masses…