"I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." – Warren Buffett   RBI continued the momentum it started in May 2022 and raised its repo rates by another 50 basis points to 5.9%. Prior to RBI, US federal bank had increased its policy rates to 3.25%. Since March it has increased its policy rates by 3% while RBI raised by 1.9% during the same period.   Usually the primary reason for raising repo rates is to control inflation by reducing money supply in the economy . Inflation that had remained below 2% for almost over a decade in USA, suddenly started rising in 2021 and reached 9.1 in early 2022. For India also inflation reached 7.79 in April 2022 before offering some relief. For August it was 7% for India whereas US recorded 8.3%. For UK and other developed economies this figure is more disturbing.   For many countries other than US, another worry...

“ Small Drops Make an Ocean .” The popular proverb looks good for motivation than anywhere close to be a reality to most people. Let me share an open secret with you - equity markets have power to prove this proverb not only to be true but a powerful tool to create wealth. Yes, by investing small amounts (drops of your savings) regularly in stock markets through SIPs in mutual funds, you can make an ocean of wealth. The only condition is that you need to be patient & regular.   We analysed SIP performance of all the mutual fund schemes that were available for a period of 15 years, 20 years and 25 years. Let us know what the results are. We have considered only regular plans and actively managed funds for the analysis. We have not considered any ETF, FOF, sectoral or thematic funds. We have considered investing Rs. 1,000/- per month in each individual scheme to calculate the real values. And we have sourced this data from www.advisorkhoj.com   15 Years SIP Returns ...

  "Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it" – Warren Buffett   Black swan event of corona forced stock markets to fell by over 40% in March 2020. Lock down was imposed in most parts of the world and the economy at one point had seemingly come to a halt. From there on people learnt on how to live with this scare and economies started recovering. Stock markets either lead or lag the economical indicators. This time they preceded the recovery in economy and stock markets not only staged phenomenal recovery but followed it with a strong bull run over next 1.5 years.   Economies have staged full recoveries and most economic indicators are encouraging except that of inflation. Volatility in markets over last six months doesn’t suggest so. So it is perhaps not very rational to link stock market movements with growth rate in economy in short period. In short period market movements are influenced ...

  "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...

Stock markets are down by close to 9% from their highs owing to reasons discussed many times in our communication. Indian Union Budget is just 3 more sessions away. The current downtrend may continue till then and reverse from there if market receives the budget in good spirit. Or the markets may go for another free fall on the day of budget and then revive after couple of sessions when they will be able to understand the fine lines in the budget. US is not going to raise its interest rates before March and this news have played its major part for the time being. Corona’s latest wave will also peak very soon and you may start moving freely in couple of weeks. International Strategic Situation - Another major worry is that of international relations where NATO and Russia seems to be at loggerheads over Ukrain. Many strategic experts have paralleled the current situation to that of Cuban missile crisis of 1962. Some Indian experts have also reminded that China may use the situation t...