2021

Are equity markets overheated?

Are equity markets overheated?  Is it time to book profits or is it actually a good time to invest given the exuberance? These may be just some of the questions running through the minds of investors.  This article delves into various factors to assess whether the stock market is indeed over-valued, what could go wrong with markets at rich valuations and what investors can do to protect their wealth.

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Prime update: The Tata group’s ‘clean energy’ club

The Tata group recently announced the investment of global PE major TPG (formerly Texas Pacific Group) in the electric vehicle (EV) arm of Tata Motors at a valuation of $9.1 billion (about Rs.68,000 crore) recently. Not surprisingly, the stock of Tata Motors soared 25% on the day of the deal announcement.

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Prime Stock Recommendation: A financial space disruptor

India’s credit growth remains in single digits even as the economy is recovering from the pandemic. This poor credit growth comes on the back of prime borrowers migrating to bond markets and retail depositors and borrowers finding fintech alternatives attractive. These are but some indicators that India’s universal banks are set to face considerable disruption going forward.

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Changes in our FD strategy and new FD recommendations

“When facts change, it is best to change your mind.” It is not clear if this pragmatic statement was made by John Maynard Keynes or Winston Churchill. But it definitely applies to the world of investing where one needs to scout for the best opportunities after factoring in constantly changing asset prices, interest rates, macroeconomic conditions and regulations.

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Quarterly review – changes in Prime Funds, our mutual fund recommendations

If you have noticed the portfolios of dynamic asset allocation funds with a fundamental-only driven model, you will see them sporting net equity holdings of under 40% now. In a market where over 40% of the stocks have a price earnings ratio of over 50 times or no PE at all (i.e., the company is loss-making), dynamic asset allocation funds can draw little comfort in holding higher allocation to equity. 

Quarterly review – changes in Prime Funds, our mutual fund recommendations Read More »

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