Preparation for rapid change in macroeconomic conditions is an intrinsic part of investing. Every investor must always stay reasonably prepared for big macroeconomic changes. When we talk about big change, inflation is clearly a macro factor which affects equity investing far more than other indicators. When inflation falls continuously and…
The years 2020-22 were indeed most remarkable for asset classes. We had gold prices staying in a strong band, bonds appreciating as rates fell, equity markets soaring under the swell of liquidity, and real estate melting up on the back of low-interest rates coupled with easy credit. There was a…
The past month lived up to the wild card prediction “Sell in May and go away” for market traders. But, investing needs a very different mindset. It requires us to do things very different from what traders do. The time to build new positions, scale up existing positions at more…
Every market bounce is getting sold. Investors are making a quick rush for the exit door every time the markets go up. Markets rise in the morning only to lose gains by the evening. Equity fatigue is probably only going to get worse with time. Investors, who got in during…
The markets fell ten days in a row without respite. Investors waited for a bottom, watching most of the time. Then, when the technicals reversed, stocks rose sharply overnight in the US markets. The investors who waited and watched are now anxious if the Indian stocks they wanted to buy…
Rising interest rates rattle markets across the world. Our market is no exception. To add to the problems of the equity markets, there is the overhang of a crisis in some asset management companies. This could further create a crisis of confidence in the equity markets going forward. The silver…
Pulling off a mega IPO is never going to be easy. To raise huge sums of capital requires mass following, great investor appetite, right signalling, and facilitation. Ironically, such IPOs almost always disappoint the participants after listing. Bringing together so many people to participate in an IPO is only the…
Thematic investing is a function of conviction and belief. Conviction grows when you believe in the right space for the right reasons. Merely believing in something and expecting your beliefs to play out in the market does not guarantee success. One should be diligent in building conviction in the right…
The clear reset in GDP growth expectations by the RBI, the Infosys results disappointment, rising attrition across Indian tech companies, and an imminent bump up in interest rates cooled off the market mood. Over an extended weekend, the markets have been given time to rethink how to reposition in keeping…
The RBI has corrected its estimate of India’s GDP for the current financial year downward. The inflation forecast has been revised upward. Clearly, we are heading towards a phase of slower economic growth and higher inflation. This sets up the stage for rising interest rates. What does this mean for…
Every year, when you look back to see what performed, the most striking feature of the market is its unpredictability. The markets choose winners in ways that only surprise investors. 2021-2022 was a year where predictions fell to the dust and favourites failed to fire. As we enter a new…
Investors who are closely adhering to the principles of value will always seek where they can find value. This search for value is constant. While seeking and searching for value, they would identify themes and sectors where the markets are not perceiving growth. By being early entrants into such opportunities,…
