Author

Truemind Capital Services

Browsing

When the booze is overflowing non-stop in a party riding on high octane, very few drinkers really think about the consequent hangover when the party stops. In such a high adrenaline atmosphere, many grossly overestimate their capacity to drink, encouraged by behaviour of their friends & crowd around them. The world markets are going through a similar party. The booze (easy money) is supplied by central bankers all over the world in high quantity and…

Sentiments of greed, fear, and confusion are transient in the equity market. The sentiment cycles are permanent. Most of us have come across the following chart of the sentiment cycle. For those who are uninitiated, the below chart represents the cycle of greed and fear in any asset class with varying degrees of emotions. Sentiment cycles move from one extreme of greed to another extreme of fear which takes valuations also to extremes from their…

The time is the middle of December and Rohit was busy finishing a task at work when he receives an email from his company’s HR. HR is asking to submit investment proofs by the end of the month. This reminded him of the last time when he didn’t submit any investment proof, a significant portion of his salary was deducted in lieu of taxes. He didn’t want a repeat of the same situation as the…

“There are decades where nothing happens; and there are weeks where decades happen” – Vladimir Ilyich Lenin. The first Roman empire rule began in 27 BC and helmed by the emperor Caesar Augustus. Roman Empire at its peak conquered a huge part of Europe and significant part of the African continent. The empire built 50,000 miles of roads, amphitheaters, bridges and infrastructures that are still in use today. Even today many of western countries’ alphabet, calendar, languages, literature, and architecture is…

Don’t fight the forces, use them. – R. Buckminster Fuller Everyone thinks that due to the recent events caused by Coronavirus we are in uncertain times. I believe we are always in uncertain times. The emergence of any event has multiple co-dependent factors and nothing gets created out of a vacuum. Since we cannot know and control all the factors that lead to the manifestation of any situation; we cannot be 100% certain about any…

In my multiple conversations with investors during the bull-run since 2014, there was no one who said that I will not take advantage of investing in equity when the market will crash. In good times i.e. when the market valuations are usually very high, everyone agrees to the logic of buying low and selling high. But interestingly, very few implement this strategy. Instead, the majority tend to invest when markets are going higher and higher,…

How often is that you chose someone for a particular task just because he is nice and end up making a bad choice? This is the phenomenon of Halo effect where one attribute of a person overshadows the other attributes and influences the decisions we take. The attribute niceness of your partner has overshadowed the other essential attributes like competence and intelligence. What is the Halo Effect? Halo effect is a human cognitive tendency to…

We have heard this phrase many times that time in the market is more important than timing the market. Time and again we hear this from many in the investment industry. Instead of blindly following the saying without putting much thought, let’s delve deeper into its wisdom and understand how relevant it is in the current scenario. In the last two decades, rising income levels has provided resources, education provided skill-sets and rapid advancement in…