Skip to main content

Holi - After Cleansing It’s Time for Purifying

Image
By

1.3.2018

"You only have to do a very few things right in your life so long as you don't do too many things wrong" - Warren Buffett

The two most celebrated festivals of Hindu culture – Diwali & Holi shows us the way how to lead better, healthier life. For Diwali we cleanse our home and surroundings, for Holi we purify our home and surroundings on ‘Holika Dahan’ and then splash the new colours on ‘Dulhandi’, the following day. The colours of bond, trust and friendship among our fraternity who stand by us at all times – good or not so good.

Coincidentally Diwali comes midway the financial year and Holi comes towards the close of it. What we do to cleanse and purify our physical and spiritual life, the same need to be done to our portfolio for a financially healthy life. While midway the financial year we should scan our portfolio for cleansing, we should purify it and splash it with new colours towards the close of the year.

Purifying and splashing new colours to your investments means – assessing your financial situation and risk appetite in the light of any new development in your personal life that may have financial implications and review & rebalance your portfolio accordingly. If need be then splash i.e include new investment products in your portfolio.

Market Outlook
Equity: Economy seems to have gotten over the demonetisation and GST effects as reflected in recent GDP & manufacturing numbers. Inflation have inched up though its well within the target so far. But overshot fiscal deficit, rising crude oil prices, less than normal rainfall in winter and summer season arriving may cause food inflation to go up. Key state’s election later this year and parliamentary election next year will contribute to volatility along with significant/non-significant news. Overall we at InvestmentMitra think that markets may see a rally before the financial year close and then remain volatile with positive bias unless some major but unexpected event take place.

Debt: Bond yields have become very attractive with 10 year G-Sec trading at around 7.7%. Though inflation seems to be heading north but we don’t see it reaching levels that may prompt RBI to increase benchmark interest rates anytime soon. Liquidity in market may be a different story. SBI, the largest PSU bank hiked its interest rates though they are still under 6.75%. Other banks are expected to follow suit.

Gold: Recent volatility in stock and debt market brought some shine in gold prices with price of 10 grams of gold breaching 33,000 in some Indian cities. It had been languishing around 29000 for quite some time. Gold is a good hedge against inflation in long term and safe heaven during any economic turmoil.

Crypto-currencies: We have been approached by good number of clients for our views on Bitcoin and other crypto-currencies. Our advice - an investor with very large heart should speculate in these currencies and that to for not more than 2% of his/her portfolio value. Trading or buying in any crypto-currency is a speculation and Not an investment at all.

So, this Holi purify your portfolio i.e. re-assess your financial situation, requirement of funds from your investments over next 1, 3 & 5 years, redo your risk analysis, check your asset allocation and splash new colours of investments in accordance with such analysis.

Wish you a Very Happy Holi from all of us at InvestmentMitra!

Comments

Post a Comment

Popular posts from this blog

This Republic Day Write Your Own Financial Constitution

By
“Constitution is not mere a lawyer’s document, it is a vehicle of life and its spirit is always the spirit of Age” – BR Ambedkar A constitution primarily is a document that details the rights, obligations, privileges, duties and responsibilities of the people living within the corridors of, and leading that country. It details the rule of governance. Without a constitution it will be difficult to live like a civilised society. We would be living like in stone-age where “Might was Right” and jungle raj prevailed all over. Like a country, each individual should also have his or his family’s own financial constitution detailing various financial objectives and the process to achieve those financial objectives, rules that will govern the way its finances will be managed etc. This applies to all individuals without exception and is more popularly known as “Financial Plan”. Like a constitution your financial plan should have a Preamble and different schedules. Preamble -...
Post a Comment
Read more

Time or Timing – What is more important with Sensex @ 64K

By
  The Stock Market is the device to transfer wealth from the IMPATIENT to the PATIENT. After swinging in a range for almost one and half years, markets breached their previous peaks and are scaling new one now. Markets have risen by almost over 14% in last three months. Major reason for this sudden rise is the return of FIIs to the Indian stock markets following the fact that India is the fastest growing economy and growing over 6% despite covid, global economic slowdown and geo-political tensions. We invest for long term and everyone knows in the long run markets will go up irrespective of intermittent shocks like scams, dot-com bubble, Lehman crisis, covid or banking troubles in USA etc. Following picture depict the journey of Sensex over 40 years since its inception.   Source; www.thenwsmen.co.in The unfortunate part is we are more concerned about the short term movements of the markets. Every time there is sudden rise or fall in them market we are gripped more by f...
Post a Comment
Read more

On Cross Roads

By
“We cannot truly plan, because we do not understand the future- but this is not necessarily a bad news. We could plan while bearing in mind such limitations. It just take guts.”- Taleb:   Propounder of The Black Swan theory. Pessimism that set in March, still persists in our minds. In fact it has deepened with growing number of Covid cases being reported. The largest question ruling our minds today is - Shall we ever be able to overcome it…………..     and if yes by when and how? Have we ever wondered how have the Indian culture survived for so many thousands of years, how come so many Indians who were transported as labourers to many African and European countries centuries ago are now ruling the roost or how come most of the top 20 firms in the world have Indian heading them and so on……….. The only reason to above and many such questions is our “ Ability to Adapt ”. We are fast learner and very quickly adapt to new situation. Indians enjoys six different we...
3 comments
Read more

Markets Tumbling, Recovering – What to do??

By
Markets Tumbling, Recovering – What to do?? "The best time to plant a tree was 20 years ago. The second best time is now." - Chinese proverb. In times like present most people flock towards safety. Most do it because they don’t know how long this doomsday atmosphere will last, some even feeling like there will be No Tomorrow. But hunger for good returns on our investment never ceases. Kin Hubbard satires, "The safest way to double your money is to fold it over and put it in your pocket." On investment and earning good money from them, Warren Buffet – the legendary investor says, "If I buy a farm, I don't know whether there's going to be drought next year, but I know that there are not going to be 20 straight years of drought, and I know there's not going to be 20 straight years of great rainfall." It is a proven fact that no matter what, in long term best returns come from stock markets only. And as Seth Klarman says, “The stock mar...
1 comment
Read more

Have You Missed Boarding the Bus

By
  "The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Russia-Ukraine conflict had clouded the stock markets worldwide giving speculations to the talks like possibilities of third world war, Russia heading for deep financial crisis, energy crisis looming large over Europe etc. With Russia-Ukraine conflict seems getting settled and much to the pleasure of Russia – the Super Power, this has now become a non-player for the markets until some significant deviation happens from the present stance taken by all major countries of the world. Present is the world of instant. We want everything instant and so are our reactions. In the age of internetted social life, dissemination of information is highly fluid. And over 99% of these netizens have mastered the art of forwarding such information without verifying if it’s a news, noise or manipulated agenda of some interested parties.   Most economies in...
1 comment
Read more