Almost all of us as equity investors are worried and bothered by the 58 K CONUNDRUM - Will this last? What are the macro economic factors that could trigger a fall at 58 K levels of the markets?
Let’s get some answers in a simple, clear manner.
When the US fiscal deficit was high AND when the US debt to GDP was high AND when the US printed money abundantly, gold performs better. This was the situation in between 1970-80, 2000-2011. Today we are seeing a gold run again. The current situation is familiar- US debt to GDP is high and the US Fed is printing money every day and gold should do better as per historical patterns. But based on the past 10-year historical returns, investors are still skeptical about adding gold. The article looks at how safe is it invest in gold and in what proportion?
The primary aim of investing is to grow our money and make it work harder for us. That means firstly focusing on avoiding negative returns, keeping funds safe and only then planning for gain and alpha returns. Diversification is what helps to grow money with a lower risk of losing. A portfolio that is well-constructed not only ensures participation during market rallies, but also helps in downside protection. A key step to building such a portfolio is to diversify across asset classes. It doesn’t just mean holding on to too many schemes. The article looks at how we can go about diversifying our investments meaningfully.
All the news around us is now focused on a 3rd Wave of Covid 19 coming and soon. Last year, when the pandemic struck and we were shut indoors, there was a heavy economic toll. Lost jobs and pay cuts tore many financial plans and broke investor confidence. This article details key learnings from that, so we are better prepared for the 3 rd wave.
The 10-year benchmark yield settled at 6.20% on 31st July • Metals and Mining, Soft commodities (Sugar) consolidated their leadership position for the third consecutive month • Indian markets are 104% of GDP - higher than the historical average 75% of GDP.
Everyone is talking Cryptocurrencies today and it’s gaining a lot of interest and investors. And many investors also want to know, what it is that they are buying into and whether it is a safe investment to get into. We look at the reasons that Bitcoins originated, the technology behind it and the reasons that it is being hyped.
The Sensex, Which first hit 1,000 in 1990 took three decades to touch the 50,000-mark, Crossing many milestones like the Harshad Mehta Scam, The Dotcom Boom and subsequent Bust, Followed by a resurgence till the Global Financial Crisis, Till the European Debt Crisis and now the Covid-19 Pandemic. But 50,000 in 3 decades. Let that sink in! Will we hit 100k?
A lot of people are still clueless about what they are buying into with life insurance, be it ULIPs or term insurance or money back/endowment plans. When buying life insurance, people hardly think more than the sum assured, premium and tenure of the policy.
In light of Covid, a large marketing opportunity is being seen by Health insurance companies. It is after all the fastest growing segment of insurance and it is being fueled by fear. A lot of people are getting hounded by medical insurance call centers and are being extolled the virtues of joining their medical insurance plan. The article looks at how to choose a medical insurance plan for the family?
Managing stock market volatility is challenging. Especially when it tanks due to unforeseen situations. What you need to ask is “Are we sticking to the plan? Has it been prepared by a competent financial planner? Yes, money invested in equities could see negative returns for some time due to the volatility as markets correct at a very rapid speed due to panic selling in a few trading sessions giving no time to exit. What are the safety measures that we could undertake to prevent capital erosion?
Equity should only be a part of our investment in a holistic financial plan. During a shock, look at the plan and investments holistically. The entire focus cannot be on the negative return on equity only. It is in fact the right period to start evaluating buys when everyone is selling. Value investing is highly underrated. But with a financial plan and advisor showing you the way, you can remain calm and reap diligent rewards.
With the magnitude of its impact globally, Covid 19 brought in a lock-down and change in ways of life as we knew it. Something that we had never experienced before. Uncertainty fuels fear and panic nudging the market to correct in anticipation of future losses. Look at the consequences and actions that we should emulate to minimize the overall impact on our financial health and therefore goals.
