In every market context, you will always see some themes fall out of favour. This usually happens after a wave of euphoria. Investors wait for the good times to come back and gradually lose patience. When this happens, investors realize that euphoria is not going to come back anytime soon.…
The panic around Russia’s war on Ukraine was swift and sharp. But, the panic also appears to be short-lived. The markets seemed to have regained some composure within a day. These reactions often keep changing. Uncertainty, when prolonged, tends to bring out fear in ways that cause extreme reactions. While…
The prospect of a war is new to millennial investors. The last century had multiple wars that shook stock markets. These wars happened at the most unexpected times and created a ripple effect in global capital markets. But after every war, rebuilding also created its own impact on stock markets.…
US Monthly inflation at 7.5%; Crude at $95; Soaring food prices; Gold at $1860; and US 30YR yield at 2.2% – The American economy is set for an interesting economic year where its problems arising from growth need to be addressed, without causing serious disruptions in the economy. What happens…
The budget clearly signalled an infrastructure thrust. The Government will lead from the front. What matters is that private investments should follow, and we should see an overall investment boom in India for the next few years. An investment boom is not an option, it is necessary for us to…
It’s budget time again, and investors have the twin worry of domestic and global sentiment to factor in next week. The Government has a relatively lighter task. The expectations are running low, and promises are also not going to be too difficult to live up to. The last budget saw…
Investment styles and inflation are correlated. When inflation stays low for a long period of time, the themes that benefit from them are different. When inflation starts rising and remains on the ascendant for longer periods of time, the themes that benefit from them are another set. Investors globally are…
Results of the top IT companies are out and an expectation reset has happened. The market seems to be quite satisfied with the performance and guidance. The coming weeks will see the NIFTY constituent sectors come out with results. Financials will be the big one. The markets are seeing persistent…
The entire first week saw FIIs turn buyers in Indian equities. After days of endless selling in December, it was natural to extend the belief into the new year too. Interestingly, the selling trend simply reversed in the new year. But it is early days yet. We need to see…
What follows an exceptional year for investing is never easy to predict. Especially when the macros that lent support to a liquidity-driven bull run, begin to turn. Most market watchers turn circumspect and edgy while making predictions. This is hardly surprising. Markets discount changing economic fundamentals, and when the fundamentals…
2021 saw the markets draw a consensus view that it is alright to buy quality stocks at any price. This view led to a PE multiple expansion in small and mid-sized companies. The PE multiples of small companies never expanded as much as it happened in 2021. This trend was…
Every market context throws up winners. Winners don’t necessarily keep winning. New winners keep replacing older ones. This applies as much to mutual funds and ETFs, as it does to stocks. The winners of yesterday need not be the winners of today. For example, FMCG was a Big winner in…