Over the course of the last one week, GameStop – a US based omni-channel retail company that offers gaming and entertainment products across 5000 stores over 10 countries became the cynosure of Investor attention and wild frenzy as a previously unthinkable saga started unfolding at break neck speed.
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Ever since the stock market hit its recent low in March 2020 correcting some 40% in response to the Covid-19 related lockdown and the ongoing sharp rebound thereafter, market experts have been largely caught on the wrong foot, intermittently predicting boom times ahead and a sharp correction.
(more…)The market is now up about 80% from the March lows and some 40 to 50% above the Nifty targets given by most of the leading brokerages in April 2020.
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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India has already witnessed a digital-first trajectory with one of the highest volumes of digital transactions in the world when the pandemic struck, and further propelled the use of contactless digital technology. (more…)
Investments in equities fetch returns in two forms. One is capital appreciation and the other is dividend. In a high growth economy like India, the focus of most investors tends to be on capital appreciation. They do not pay much attention to dividends. This is a mistake. Dividends play a key role in the valuation of a company. In value investing, dividend yield is a key parameter which determines whether a stock is attractive. It has been observed that a company which has high dividend yield is expected to contain downside for investors in comparison with a company which has low or no dividend yield. A company’s dividend yield is calculated by dividing dividend per share paid by the company by its share price. (more…)