The prospect of rising inflation in commodities is bringing out a very distinct response. Governments are discouraging commodity exports, taxing them, releasing their strategic reserves, and trying desperately to stabilise domestic prices. We see this in metals. And could also see this spread to other commodities, especially in food and…
A meeting of the Fed overturned the world’s expectations on interest rates. This means more than just a forecast. It signifies that the need to shift the trajectory of our expectations is now urgent. The markets immediately took notice of the messaging. The up move in the dollar indices, the…
When quality is bought at any price, the market opinion tends to get polarised. On one hand, the believers in quality stocks are using past performance to justify investing at even the high valuations prevailing now. On the other, value investors believe this trend is not sustainable. The lack of…
“When is the best time to put money into markets?” This question bothers every equity investor no end. But what every equity investor must ask himself is, “When it’s the best time, did I put my money in markets?”. Most investors never invest when it is the best time. And,…
Markets have quietly accepted the second wave of Covid as a reality. They recognise this wave will go through its woes and leave behind a trail of damage. The loss in this wave will probably hurt more given the way it has spread, the damage it has caused, and the…
The current market context is very interestingly poised. On one hand, FIIs have relentlessly sold nearly Rs. 23,000 Crores of Indian equities in this financial year. On the other hand, domestic investors, specifically retail, have absorbed this selling and moved into a more bullish stance on midcaps, small caps, and…
The inflation data from the USA aren’t exactly encouraging. The uptrend in global commodities seems to pose a serious inflationary threat. When the world is running low on inventories of several commodities, a sharp spike would naturally force user nations and user industries to stock up whenever a price correction…
Lockdowns impede economic activity. In their present form, the impact may be different from the last time. We are heading towards a strategy where economic activity loss can effectively be recouped. The stock market broadly knows this. This explains why confidence hasn’t ebbed in equities. When we break down and…
For an investor, it’s normal to be stopped by a stranger and asked for advice on a specific stock. This tends to happen more often in bull markets. When a seeker asks for advice, they often already hold a view and at times may even have undertaken an investment. In…
An argument on social media went like this. “Look at how this stock price has been rising continuously without any let up? How can you say this stock is overpriced?” The question was from an investor in his first market cycle. He owned a company that was trading at thrice…
The resurgence in Covid cases has once again triggered Covid trades. Investors are going back to what worked last year in the markets during the outbreak and lockdown. This seems the easiest thing to do. But one can’t be sure that this is the smartest thing. The way societies respond…
The sharp upswing in the dollar and the resulting softening of the rupee has set the context for another phase of volatility. If the exchange rates continue with this trend, exporting industries will benefit significantly. But, the commodity consuming companies and importers are heading for some rather testing times. The situation…