“Details create the big picture.” – Sanford I Weill There is a stark contrast in investor sentiment between fixed income and equity. Equity investors are quick to digest negative news and eager to participate in the asset class. On the other hand, fixed-income investors are taking their time to…
“One must choose in life between boredom and suffering.” ~ Madame de Stael Often, the market is an exciting place for investors. There’s always something happening, a new idea to explore, or an old lesson to relearn. Despite transitioning into a new regime of higher inflation and an impending…
Knowing what to focus on in every market context is important. Investors are prone to focusing on the wrong things and missing out on what they really need to focus on. Investors are so obsessed with a few things that they ignore what is more important to their Investing. This…
A casual conversation with a DIY investor was extremely educative. The investor had made returns of 18% by investing from the COVID bottom. He believed that performance was sustainable annually and consistently. Telling him that his expectations were high was not going to cut much ice with him, but understanding…
Even in the best-performing companies’ investors have the tendency to keep extending their expectations. Companies have the habit of giving future guidance. They guide us on how their profits and sales will grow. Investors layer their judgements on such guidance and start comparing the actual performance based on their expectations.…
Where the retail money is going tells you what the markets are thinking. The retail money is largely moving towards smallcap and midcap mutual funds. The markets broadly seem to think that timing the market is not possible. This judgement seems to be forcing investors to dump their money in…
There are times when you must not buy the market. Under such circumstances, even indexing is not advised. But, that does not mean there are no opportunities in such a market. In any kind of market, there will be very selective opportunities to invest. An investor must recognise when he…
When a fund manager leaves, investors must revisit the drawing board and decide whether or not they want to stay invested. How should one go about making this decision? To begin with, one must evaluate the circumstances of exit. Why did the fund manager leave? Who will succeed? There are…
Welcome to this month’s Finesse blog, where we’re studying inflation trends, what the Fed is so worried about, and market expectations around RBI’s impending policy. We also explore how savers can approach investing when the yield curve is flat and what to do when the markets are at all-time highs.…
When the market receives news flows from a company, and it does not take a liking to what it hears, then the reaction is immediate. We saw that in a recent announcement by a leading automotive conglomerate to invest in a private bank. The market almost instantaneously took a dislike…
The Nifty, which seemed to be persistently buoyed by FII flows, finally saw the tide drop. The results of top index majors were hardly confidence-inspiring. Growth expectations are getting ready for a reset. Indices seem unclear on how to price in growth for the rest of the year. The first…
This month’s outlook explores why 2023 is a year for fixed income and how opportunities change every cycle. As a bonus, we’re also sharing a framework for product selection. Talk to your investment adviser today to prioritise safe investments. The Market Cycle The nature of fixed-income returns often trips investors…
