Podcast Transcript Every portfolio often needs validation. Our ideas are constructed in a particular context and we find that soon thereafter the market context changes dramatically. My own experience from previous bull runs is what comes to mind. When we come out of a bull market, we tend to think…
The crack in US markets was long coming. Lest we forget, this is America’s longest bull run in history and their economic problems are far from over. So, what caused this euphoria? Liquidity has been at the core of America’s economic problems and solutions. For a decade, America has been…
The stock markets capitulated this week. The fears were largely overdone. The sharp dip in OMCs clearly indicates the symptom. The markets are clearly gripped by the fear of loss. And, investors dump every stock where they fear further loss. And the very risk aversion they display is causing huge…
Podcast Transcript: Clearly, our markets have walked into a crisis we could have avoided. It was in good measure… our own making. Too much liquidity chasing stocks had made markets way too expensive. But, investors kept pouring money into SIPs. And the markets refused to correct despite FII’s selling…
The markets saw heightening volatility this week. The stress was very visible in financials, small caps, and midcaps. The sharp cut in valuations of companies in this place has come as a nasty surprise. What went wrong? Firstly, investors assumed that growth would last for a long time. Secondly, they…
Podcast Transcript: I met a friend after long years. He had been around the world, worked in many countries, and seen the best and worst of the oil booms. In fact, he worked in that sector and was slowly getting ready to retire. We go a long way…
If an asset class is hitting multi-year lows, then we tend to move away from it. On the contrary, when an asset class is nearing multi-year highs, we see the most clamour for it. Investor behaviour tends to shun risk exactly when valuations are very much in favour. The current…