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…
Quick Edit: The AGM of Reliance settled one thing. The company’s reign as a market mover has ended. Nobody is going to be compelled to own it. Market leadership has to be established before a bull market begins. At least, the process of crowning a new leader has to begin. One…
Quick Edit: A slowdown stares at us. Bad news, isn’t it? But, it comes with a silver lining. This slow down is not cyclical. It has not been thrust on us by the times. It is systemic. Our system has invited it on us. Masterly inaction has been the best…
Quick Edit: The rupee at 56 – what does it mean to investors? In dollar terms, the much beaten equity assets have only got even cheaper. Risk averse domestic investors who assumed that debt was the safest investment in turbulent times have been badly hit. Money invested in Indian rupee…
Quick edit: It is every investor’s dream to catch a market bottom. But, catching a bottom is an elusive hunt as nobody knows it before it happens. The markets show excessive pessimism at lower levels and unrelenting optimism at highs. Interestingly, the reversal in sentiment often happens swiftly. The reversal…
Quick Edit: Predicting the index is a dangerous business. Trying to do it within a time frame is double trouble. In times like these when investors lose faith in the system, predicting can be far more riskier than investing. Investing now is a lot simpler as valuations have got lower…
Quick Edit: When indices fall, we commonly find ourselves wanting to buy attractively priced stocks and not finding enough money for doing that. Not having liquidity should not stop one from buying blue chips which we believe are attractively priced. The answer to this problem lies within each investor’s existing…
Quick Edit: Randomness. The stock markets feel its omnipresence and know how it plays an irreplaceable role in changing market direction. 9/11, the financial collapse of 2008, the earth quake and tsunami in Japan are some random events which dramatically impacted global markets in recent times. The only thing that…
Quick edit: Statistics lie. The Statistician lied. The first is an often repeated adage. The second is the appalling state of governance in our country. Manipulation of data is an old trick in a government’s bag. But, the context in which such manipulation surfaces in the public domain is very…