Reflection on my learnings and experiences on Investing in the Stock Market…
This month the US Central Bank (Fed) kept interest rates unchanged at 5.25 – 5.50 percent, while the European Central Bank (ECB) raised rates by 25 basis points to 4.50 percent, in their respective monetary policy meetings. High inflation has been an inimical issue for the last two-and-a-half years – and central banks have been … Continue reading Reviewing the Current Inflation and Interest Rate Scenario
Deciding on “which stock to analyse” should be given serious consideration. The Indian market regular, SEBI, classifies listed Indian stocks - based on their market capitalisation - into three categories: large-cap stocks, mid-cap stocks, and small-cap stocks. Stocks ranked between 1 and 100 by market capitalisation are the ‘large caps’; those ranked between 101 and … Continue reading Selecting “Stocks to Analyse” Optimally
Your investment manager should be incentivised in a way that serves your best interest. Do you invest in the stock market? If not, you should. Why? Because the stock market is the greatest wealth creator of our times. Perhaps, also the most easily accessible asset class: anyone with a PAN card and a bank account … Continue reading Misaligned Interests
Making Quality Decisions in an Uncertain World with a Brain that Craves Certainty is a Challenge. Decisions and the principles of decision-making are never taught to us at home, school, or college. But where we are now is the result of a series of decisions we have made in the past, and where we will … Continue reading The Labyrinth of Decision Making
Forecasting does add value to the decision-making process. But it is not what you do that matters, it is how you do it. Everyone Forecasts Forecasting is the act of making predictions about the likelihood of something happening in the future. It is not a cognitive activity confined only to weather, politics, business, or sports. … Continue reading Role of Forecasting in Decision Making
What does it take to succeed at investing and build wealth, that ultimately gains us financial independence? I believe, based on my 15 years of investing experience, that for successful investing, psychology matters more than finance and maths. In this post, I discuss four psychological qualities that can help an investor succeed at investing. These … Continue reading Four Psychological Traits for Successful Investing
The bank failures and rescues in US and Europe over the last two weeks have wobbled financial markets and unnerved investors, probably, for the right reasons. The events, to a certain degree, are reminiscent of the events of early 2008 that triggered the 2008-2009 global financial crisis. It all started with Silvergate Capital, a bank … Continue reading The Recent Banking Troubles in US and Europe can be pernicious if not subdued
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
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