The first blockbuster result of the third quarter set the mood for another exciting results season. Evidently, the performing companies are set to meet analyst and investor expectations. The prospect of exceeding expectations are however not as promising. The markets seem to know this well. Retail investors seem to be…
When you start an investment, journey counts. Given that most people aggressively start investing around market peaks, their starting point is not ideal. Most investors tend to scale up their equity investing around market peaks. While this has become a way of life, the subsequent behavioral responses matter for their…
Investment Strategy: In the current market context, volatility is on the cards. Most bond fund investors are likely to experience short term pain and may not experience a positive rate of return. Some bond fund investors may not even benefit from lower interest rates. However, there is still a window…
The week saw increased scrip level volatility and better index level stability. This paradox is increasingly becoming a trend in our markets. Indices are showing lower volatility while more constituent scrips are showing very high volatility. The closer scrutiny in the corporate governance of individual companies is clearly the…
Investment Strategy: As we move into a rising interest rate scenario, the focus shifts to high-quality low-volatility investments. Our strategy has been to construct a layered portfolio by locking into high-quality investments at different yields. At this juncture, short-term AAA investments make the most sense. Contact us if you would…
Being Contrarian is never easy. Most of the time, the Contrarian makes choices that are very different from the consensus. Given that consensus is far more powerful, a Contrarian has to withstand time and performance pressures for a very long time. Only if he holds steady, can he benefit from…
Recency bias hurts the most when a bull market ends. We tend to buy investment ideas which did very well in the recent past. This happens across the board. The stocks in favour remain the ones which hit recent highs and gained the most in the past year. We tend…
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…
A relatively insignificant event triggered a massive scare in Indian financials on Friday. But, the story does not lie there. It lies in the institutional imperatives clashing with individual investor interests. When there is a problem, either of solvency, liquidity or of risks, it is the bigger investors who bail out…
Investors are always so busy celebrating market highs that they miss the peak out moment. So, most investors tend to wake up long after the market corrects. The only way to ensure one is alert to the market highs is to follow an active-passive approach that is dynamic. This requires…
The purpose of monetary policy is to manage inflation, facilitate growth, and regulate credit in the economy. The RBI’s Monetary Policy Committee (MPC) has a clear mandate to target inflation and maintain it around 4%. In terms of bond markets, 2017 and 2018 are like chalk and cheese. 2017 witnessed…
Risks and returns are always meant to be viewed holistically. But, how many of us do that? An interesting incident only reminded us how little people respect risks. An investor had been invested in equities for the three-year period between 2014 and 2017. At the beginning of 2018, just as oil…
