Quick Edit: India’s transition from a crony capitalist regime to a market driven one seems to be a never ending one. First, we dismantled the old licensing regime with great difficulty in the nineties. But, licensing made a swift comeback in sunrise sectors like power, telecom and infrastructure, albeit through…
Quick Edit: The big boys of the 2008 stock boom are all trading at a fraction of their peak rates. Reliance, ADAG, DLF, BHEL, L&T & BHARTI AIRTEL have all shown little resilience and look a pale shadow of the market movers they once were. Yet, our indices are showing…
Quick Edit: The power of hoarding is such that it can actually make you believe that the manipulated price that gets thrown up is for real. Once the power to hoard goes, the price will simple fall. This truth is universal. Wealth is mostly lost because we believe that hoarding…
Quick Edit: A slowing domestic economy is a given. Agriculture will see negative growth if the present scenario prevails. The hunt for a safe haven in equity only gets tougher by the day. The very definition of a safe haven is set to change from an absolute one to a…
Quick Edit: The policy window, a period when parliament is not in session starts now. If the government is serious about reforms, it should be moving now. And, fast. What can be done to remove the stigma of being an underachiever? The expectations are actually not centered on performance. It…
Quick edit: The earnings guidance, a concept hugely popularized by Infosys in India, displayed its downside this week. When Infosys performed marginally below the quarterly guidance, investors turned viciously punitive. Investors overreacted to the earnings disappointment. The management actually stopped giving quarterly guidance for the first time. Now, there is…
Dear Investor, Greetings from ithought! Successful investing is all about having a sense of ownership. Think of your past experiences in equity investing. Ask yourself why the bets you took in mutual funds did not play out as expected. Could you have done things differently to bring about the right outcome? What…
Quick Edit: Followers do little to themselves; they mostly contribute to the winner’s kitty. Investors who wait to see the right signs all around them mostly end up being followers. By the time the media turns bullish, valuations would have run up substantively. Watching business TV has many downsides. But,…
Quick Edit: Portfolio churn isn’t always an avoidable idea. While constant churning of portfolios is a strict no-no, selective churning has its advantages. In fact, it is a powerful tool to rejig your book when markets come out of a bad phase like the current one. Churning actually can help…
Quick Edit: Investors shunned equity for a long time and chose the security of debt. Safety took precedence over returns. Like people hide themselves in the safety of bunkers in war ravaged zones, capital fled the stock markets to safe bunkers like debt and gold. Bunkers are nothing but temporary shelters. Once the…
Quick Edit: Nervousness is not new to the stock markets. The context which creates it makes all the difference. The week saw nervousness of a different kind. The markets refused to go down. An eagerness to see positive news flows contributed to the nervousness. After a long time, fear seems…
2008 was the year of the last bull run. The previous bull markets happened in 2000 and 1992. Coincidentally, in the last two decades, bull markets happened every eight years. Investors bought equity most during these phases and the least during the lean years as the current one. What happened…