The last one-and-half years were tough times for the market. Volatility and Uncertainty dominated. Technically, we cannot call this a bear market as prices, even though had wild swings on both sides, are at the same level as they were one-and-half years ago. Prices need to fall by 20 percent or more from the recent … Continue reading A glimpse of ‘Risk on the Wane’ in Markets
An Investment Approach to Achieve Superior Returns Consistently alpha - excess return of an investment relative to the general market: Contrarian - a person who opposes or rejects popular opinion: The goal of an investment manager is to generate alpha – a return more than the general market. Investment managers are paid to achieve alpha. … Continue reading Contrarian Investing
The rising trend in inflation rate based on consumer prices continues in March 2022 too, as the latest inflation readings from India and US stays above the target rate set by their respective central banks. The consumer price inflation was 8.50 percent in US and 6.95 percent in India for the month of March 2022. … Continue reading The Ambiguity of High Inflation
The Reserve Bank kept its policy interest rate unchanged and maintained its policy stance as ‘accommodative’ in the monetary policy committee (MPC) meeting held last week. The central bank has turned more cautious regarding the economy’s prospect than it had been in February 2022 due to the subsequent geopolitical developments and consequent spike in commodity … Continue reading RBI’s pivot of focus from Growth to Inflation
Companies return value to its shareholders through two ways: dividends and share buybacks. Dividends are the distribution of part of the earnings of the company as cash to its shareholders. In share buybacks, companies use excess cash on its balance sheet to buyback its own shares, which results in the decrease of outstanding shares, thus … Continue reading Achieving Good Return from Share Buybacks
The inflation based on consumer price index (CPI) for January 2022 increased to 6.01 percent from the 5.66 percent reported for December 2021. This was 4.06 percent in January 2021. The CPI inflation has crossed the RBI’s target rate of 4 percent with a +/- 2 percent range. Inflation has emerged as a prominent risk … Continue reading Will High Inflation remain as major risk to markets throughout 2022?
An investor should be aware of it for better decision-making amn capital - post - influence of interest rate on stock price The years 2020 and 2021 were good for the markets. Nifty50 – the benchmark index of NSE – gained 14.77 percent and 23.04 percent in 2020 and 2021, respectively. But the performance of … Continue reading The Relation between Interest Rates & Stock Returns
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