Why you must tread with caution
Stock prices in the US and India are near record highs. Bond yields are still at the highest levels in several decades in the US. Either equity prices or the…
Be fearless when others are fearful!
Stock market investing is not a daily activity. You must give your money time to grow. It grows as it rides through economic and stock market cycles over the years.…
What do rising interest rates mean to your portfolio?
In a surprise move last Wednesday, the Reserve Bank of India's monetary policy committee hiked key borrowing rates to curb rising consumer price inflation (CPI). The upward limit of the…
Generating “Alpha” on your investments
The volatility in the stock market is not for the faint-hearted! If you thought you could strike bargains when share prices drop, markets could be brutal to your position. While…
Omicron – Pandemic or Endemic?
As we end this calendar year, the battle against the pandemic seems well set to continue into 2022. According to early reports, Omicron, the latest variant of the COVID-19 virus,…
Is the World on a Rebalance & Reset Mode?
It was an era of excesses. With the US Federal Reserve considering slowing down bond purchases faster than before due to rising and stubborn inflation, it could be a beginning…
Are IPOs headed for a Secular boom?
There are only two things wrong with money: too much or too little. Charles Bukowski, a German-American author whose literary work revolved around the poor in America, said that in…
Crystal Ball Gazing: Stock markets in 2022
The best thing about quantitative easing is that it works in practice but not so in theory. Ben Bernanke, the then US Federal Reserve chairman, said that in 2014, the…
Investing lessons from the pandemic
Narratives are significant vectors of rapid culture change, zeitgeist, and economic behaviour. Nobel laureate and renowned economist Robert J. Shiller wrote that in his book on Narrative Economics in 2019. There…
Inflation and Stock Markets
When important government institutions announce critical decisions, one has to go beyond the obvious implications of those decisions. This is clearly evident in financial markets. When central bankers worldwide almost unanimously cut policy interest rates and infused liquidity in financial markets to revive economic growth, there was a critical outcome which prudent investors and observers had to bear in mind: Inflation. The resultant impact simply can’t be ignored. Increasing supply of liquidity and loose monetary policies globally ensured rapid resumption of asset prices and economic activity. But the increase in money supply also creates a real inflation challenge.
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