Spanish Flu Impact on the Stock Market in the USA and Response Measures by the Government

The Spanish flu, also known as the 1918 flu pandemic, was an unusually deadly influenza pandemic caused by the H1N1 influenza A virus. Lasting from February 1918 to April 1920, it infected 500 million people – about a third of the world’s population at the time – in four successive waves. The death toll is typically estimated to have been somewhere between 17 million and 50 million, and possibly as high as 100 million, making it one of the deadliest pandemics in human history.

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Investments in US Markets

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In CY2019, when the Nifty clocked 12.02%, the NASDAQ 100 index gained 39.98%. Being an Indian Investor definitely helped as the rupee weakness further added a couple of percentage points in returns. US markets especially in the areas of tech and healthcare have done well and also have significant upside potential for growth. The US market has been perceived as the ‘Mother Market’, and has attracted many investors worldwide.

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Asset Allocation

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In the pursuit of earning highest possible returns many investors keep chasing the asset class which has done well in the recent past. In the process, many a time they buy the asset at a price when it has reached the bubble zone. They end up losing money. Earning high returns without risk is almost an impossible task. This is because every asset class goes through different phases. This brings fluctuation in price movement of asset classes. A sensible way to seek healthy risk-adjusted returns is to follow a disciplined approach of asset allocation and systematically rebalance your portfolio from time to time.

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Delisting – What you need to know

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Delisting has suddenly started grabbing attention as some marquee promoters like Vedanta, Adani Power, Hexaware have been considering or chosen to opt for this route, subject to their obtaining necessary regulatory and shareholder approvals. The name of a liquor major has also been doing the rounds. Suddenly there is a lot of buzz and flurry of activity in this space.

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Your Multi Cap Fund Portfolio may soon look very different – What should Investors do?

Many investors who held small cap stocks in their portfolio were pleasantly surprised when they read the circular issued by Securities Exchange Board of India (SEBI) on asset allocation of multi-cap schemes on September 11, 2020. The Capital Market regulator has advised fund managers to invest minimum 25% in each large, mid and small cap stocks. At a time when  most multi-cap funds have invested a large part of their money in large-cap stocks, this directive is expected to change the portfolio mix and the risk-reward associated with multi-cap schemes. (more…)

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Low Priced Stocks vs High Priced Stocks – Which is better?

Inexperienced investors often confuse the share price of a company with its value. Let us understand this with an illustration. If an investor is given an option to buy either a stock priced at ₹ 10 or stock priced at ₹ 10,000, the possibility of such an investor buying the low-priced stock is quite high. As such, the typical retail investor suffers from a misconception that higher the price, lower are the chances of making serious money from a stock without taking into account other factors like valuation parameters such as price to earnings multiple, price to book value or dividend yield which is a serious fallacy. (more…)

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