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…
Podcast Transcript Teaching is seen as the finest form of giving. Sharing what one knows is the noblest thing. Which is why we call teaching a noble vocation. Teaching helps us learn several subjects. Subjects have syllabi that can be taught to a method. Investing is not a subject. It…
The extension of single party rule in India is now clearly off our radar. The 2019 general elections will be won on the strength of alliances. Obviously, the ruling party will need to reboot its strategy while the opposition suddenly seems to have begun its preparation earlier. As investors, we…
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…
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…
Investment Strategy: The RBI’s stance of calibrated tightening indicates that rate hikes are possible but not mandatory. As investors, it is important to capitalize on rising yields to structure a layered portfolio. The spread between the repo rate and the 10 Year Government Security is nearly 1.5%. This presents a…
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…
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…
“Prophecy is a good line of business, but it is full of risks.” ~Mark Twain These words ring a bell as we approach the end of a decade after Lehman. Predicting almost never brings glory to the person doing it. Even if, by the twist of fate,…
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…
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…
Podcast Transcript The markets are hitting new highs. But my advisor says, “Think long term”. I asked him if we need to book some profits. He says “Do nothing, just let the investments stay.” Friends, keep bringing up these conversations more frequently these days. The problem with…