Every business adapts to change. Businesses without the adaptive strain in their DNA die. Adaptability is the key to survival. A classic all-time great example is WIPRO. When rampant tax evasion in the market by peers elbowed them out of the vegetable oil market, they didn’t blame the system. Nor did they…
Stock valuations have a mind of their own. Most of the time, stocks tend to trade away from what we evaluate as fair value. They either trade below or above what we enumerate as fair value. Mutual funds can never be insulated from the influence of stock valuations. Whether stocks are trading relative…
The index has held steady and only gone higher in 2017. Corrections haven’t even lasted beyond a day or two. But, at the same time, several traditional index movers have tended to be weak. IT and pharma majors have remained weak and every rally in bellwether stocks in these sectors has been sold down. The…
What is going on in the market now? Most people are wondrously looking on. The anxiety to invest remains high. The index seems infallible despite company-level bad news periodically hitting the street. The interest has shifted towards larger companies. Midcaps seem to be taking a momentary pause. Global ETFs seem to…
“When it rains, it pours good news on markets”. The prompt arrival of the monsoon has eliminated one chapter in the investor’s worry book. The market’s monsoon worry got eliminated even before it began. With the monsoon arriving on time, the stage is set for the best year of sowing in…
The stock market is the only place where heightened optimism and extreme pessimism actively coexist. The same investor who is overly optimistic about one set of investments is strongly pessimistic about another. The majority view is also prone to holding both judgments at the same time. It is only a…
The Indian markets have rallied continuously from January 1, 2017. The Indian markets moved towards making new highs post-election results in Uttar Pradesh, India’s largest and politically significant state. Sentiment among Indians towards equity remains high. There is a sense of urgency to move money from other asset classes towards…