Human nature is generally programmed on self-destruct mode when it comes to the stock markets. We want to buy when everyone is happy and join the cheer. When everyone is forecasting doom, we want to be selling and patting ourselves for having apparently got out before the big crash. This behaviour unfortunately, is very injurious to wealth. Let me talk about the ‘falls’ or ‘crashes’ that happen in stock markets.
Real Estate Investment Trusts, also known as REITs, are attracting quite a bit of attention lately from Indian investors, who have a known fetish for real estate. Can REITs deliver land-like capital gains, while saving us of the concentration risks and the high maintenance required in property investments? Can they substitute for equities or mutual funds in one’s portfolio, in terms of wealth creation?
This is an update to the Nifty 50 outlook that was posted about a month ago. The Nifty 50 index has struggled make headway on the upside and has instead traced a bearish sequence of lower highs and lower lows in the daily chart. As observed in the previous post, the low at 14,500 was …
Small finance banks, with their focus on small ticket loans for urban and semi-urban India, are a play on the underpenetrated market for financial products in India. Yet, after stellar performances soon after their IPOs many of these stocks have seen their valuations levelled. So, when a new candidate – Suryoday Small Finance Bank IPO (Suryoday) comes out in an overcrowded primary market, how should it be judged? Read on.
This is an update to the Nifty outlook that was posted on January 9 2021. The Nifty 50 index has achieved the first upward target of 14,600 that was mentioned in the earlier post. And the index also got within striking distance of the second target of 15,900. The Nifty 50 index registered a high of 15,371 before the recent slide.
Suddenly everyone’s talking about US bond yields surging. I see that the 10-year US government security is up by some 0.02 % to 1.57%. Why is this such a big deal?
While yesterday’s move isn’t big, what’s big is the US 10-year Treasury’s 43 basis point rise in the last one month. This means that, a month ago, investors in long term bonds issued by the US government were getting 1.13% by way of interest and now they’re getting 1.57%. That’s a 40% jump in returns from an asset that is regarded as one of the safest parking grounds for money in the world.
Many investors think of corporate governance as an esoteric concept that is good to have. But if is a little dodgy, they think it can be safely ignored, as it doesn’t affect them directly. They couldn’t be more mistaken.
Having discussed the origins of the concept of corporate governance, here are some key ways in which mis-governance at companies you own shares in can directly impact your returns.
In our last article, we discussed the performance of sectoral indices. A look at the thematic and strategy indices on the National Stock Exchange (NSE) would be a logical follow-up to the previous post.
We will be using the same Point & Figure charting based methodology, that was used earlier, to identify the outperformers in relation to the Nifty 50 index.
The year 2020 will go down as a historical one for the stock markets for more reasons than one. If COVID-19-triggered crash in March 2020 was dramatic, the subsequent rise was even more remarkable. If someone had predicted at end of March 2020 that the frontline stock indices would close at lifetime highs by December 2020, I am sure there would not have been too many takers for it.
With Indian stock markets at an all-time high valuation despite uncertainty about the shape of earnings recovery, it is not surprising that many investors want to take some money off the table ahead of New Year. There could be three legitimate reasons for you to sell some of your equity holdings.
As the Nifty scales new highs, there are specific sectors that are outperforming the index. In a rally such as the present one, if you have a positive outlook on the broad markets, it makes sense to focus on these sectors than look for contrary picks.