“Time is the friend of the wonderful company, the enemy of the mediocre”. It is the perfect time to recall this wonderful quote by Warren Buffett. Interpreting a fine thought itself is an art. A company which did wonderfully in a growing economy may well fall into bad times when…
Investing defensively can be hugely beneficial in uncertain times like the present. This would mean changing one’s risk choices and return expectations. This is hardly going to be easy. Historically, investors always played for the highest returns at all times. In a growing economy, this strategy seemed to work for…
Raising capital under extremely adverse circumstances is truly a great accomplishment. The bigger Indian corporations have shown remarkable chutzpah in raising big monies during the COVID crisis. These monies are largely being used to deleverage their bloated debt. Clearly, India’s big businesses see leverage as a grave risk and are…
It took one virus to reshape the world’s priorities. Pay cuts, job loss, and financial stress are the new normal. Families are cutting back on non-essential spends, loan moratoriums are a relief to borrowers, and people are dipping into their emergency funds. At a time like this, why should anyone…
The US markets are now leading the global market sentiment. Indian markets seem to be fully coupled with what goes on there. Our markets are taking continuous cues from the Dow and Nasdaq. Investors are fashioning their decisions on US market moves and their index futures. As the battle against…
On 27 March 2020, the RBI announced that all Indian financial institutions under its purview would offer a moratorium on loans. This applies to all EMI falling due between March 1, 2020, and May 31, 2020. The moratorium may extend for another three months. What exactly is a moratorium? A…
On Friday, the released US jobs data was a huge positive surprise. This coupled with a weakening dollar gave the stock market its perfect fuel cocktail. Risk-averse investors who were holding back seem to be taken by surprise. The surprise factor can instil much-needed confidence and calm nerves in global…
The markets are at peak polarization on valuations. We have an extremely expensive part and a very inexpensive part. There is no middle to this market. This gap will not sustain for too long. In a de-growing economy, earnings will be unable to guide investors in decision making. Most good…
Equity markets are battling bear sentiments in the backdrop of the COVID-19 pandemic. This is the steepest crash markets witnessed since the global financial crisis in 2008-09. Uncertainty looms over the way forward. In this post, we share basic bear market investment strategies. Cashing Out Bear markets spike fear…
The RBI delivered on the government’s announcements. Another rate cut extended moratoriums on loans until August 31st, and changed credit exposure limits to large business groups, sound a clear pro-growth message. This is good news at a time when the GDP growth outlook is negative, urban stress seems to be…
Investing without a plan is like driving directionless on an unknown road. A map indicates your destination and the best path. Without one, you risk taking a winding route. Similarly, to make your investments work for you, you must know why you are investing. Your financial plan is a map…
The signals from the stimulus are crystal clear. It is more monetary than fiscal. Clearly, the government is trying to bet on the entrepreneurs, self-employed, farmers, rural industries, and local businesses. This seems increasingly like a Bharat driven economic recovery of India. More money will flow into rural Bharat than…
