The rise in share valuations of one sector is not uncommon. We have seen sectoral trends dominate our markets for the past few years. Effectively, the performance of the market is often just the performance of one or two sectors. At extremes, it becomes even more finely nuanced into just…
The fear of missing out is inescapable. It usually manifests in a singular way. People get obsessed with one thing. This obsession grows so much that everybody becomes greedy exactly when they must be fearful. They end up buying something without thinking of the valuation, attractiveness or return potential. The…
Having money and time at one’s disposal is often a bigger problem than not having both. It is during those phases that the mind tends to seek the unnecessary. It is when we invite problems into our life through hot pursuit. The growing trading culture among millennials and tech-savvy investors…
Investing tends to seek excessive peer validation. There is a strong reason behind this. We constantly worry about whether we are doing the right thing. How do we check on that? The easy option is to compare. So, we compare with friends. This explains why what others are doing interests…
“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…
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 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…
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…
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…
