The falling interest rates made many investors move from debt to equity. While doing so, they chose investment instruments which were paying good dividends. Dividends became a proxy for interest. This trade worked well for little under a year. Subsequently, it has gone horribly wrong. Here is the bad news…
The heightened volatility in our markets seems unrelenting. Fear is pervasive. Every rally is getting sold. Markets are nervously scanning global indices all the time in anticipation of more bad news. While Coronavirus seems to have been contained in China, it is wreaking havoc in the western world. India is…
The Covid saga has open timelines. Economic activity is under lockdown. Stock markets are functioning. This unusual setting throws investors a peculiar problem. We now know that economic growth in 2020 – 21 is likely to be minuscule, with visible risks of even turning negative. But, the global financial system will…
My best investing lesson was when our family started setting up a mango orchard. We went about scientifically constructing the place and the planting went fine. Then, we had unexpected weather. The plants died in numbers. We relentlessly replanted. Tended to the plants for four years with great care. The…
We are coming out of the biggest roller-coaster week in Indian investing. The date, Friday 13th March, seemed almost celestially made with this destiny. The lower circuit filter hit by the index in early morning trade gave most market participants the shivers. It was a moment everybody knew could happen…
The last week offered great buying opportunities. The next week may be even better. The key thing to remember in investing is to show conviction when it is found most wanting. This is never easy. When the world is gripped by fear, it may be too much to ask many…
The markets are continuously becoming increasingly divided on valuations. Expensive stocks are quickly becoming very expensive. Cheap stocks trade cheaper with every passing day. This dichotomy is furthering more investors to believe in and own only popular stocks. Fund managers are also riding the wave of success delivered by a handful of overvalued stocks. The principles of…
We almost always overvalue bull-fatigue over bear-fatigue. Bulls appear to be uncontrollable and aggressive spending their energies in faster bursts. So, we think bulls are more vulnerable than bears. In bull markets, this is very close to the truth. But, the way bulls play the bear markets is often very…
The problems of a sector can either be solved by aggressive governmental action or by letting things take their own course. Markets will find their own level. While we have problems in several sectors, the solutions are often non-binary. It is not one way or the other. More often, economic…
Post budget, everybody expected the markets to correct further. A week after the budget, most people are revisiting their market expectations. This is hardly surprising. Making and unmaking our expectations is a recurring exercise. Investor interest in equity seems to be sustaining, though most investors aren’t sure whether they must…
Budget 2020 gives nothing much to the investor. In fact, it takes more than it gives. Taxable income of investors is certain to rise irrespective of their wealth growing. Now, that is something most investors have not experienced for 23 years. But, paying taxes is hardly an issue with investors.…
The Corona Virus outbreak in China brings the heavily underestimated power of disruption to the global economy into sharp focus. The effect of a virus in a globalised world is far more than in closed economies. Interconnections kick in immediately. Instantaneous news spurs people to suddenly stop buying goods from…
