Everyone loves a rising market. The longer, the better—what everyone wishes for. This creates the wealth effect, which leads to higher consumption and spending and thus contributes to GDP growth, which feeds into higher stock prices. Under all the glitz and glory, something is becoming unfavorable.There is a bad in every good thing and a good in every bad thing. Like the circle of life, good times are followed by bad times, and bad times…
This is probably one of the best podcasts out there on personal finance & investment topics.This beautifully explains why debt/loans can cause a lethal blow to your finances. A lot of wealth & lives have been destroyed because overconfidence led people to take on more loans than they should have.As loans increase, you narrow the range of outcomes you can endure in life.If you are someone who believes that taking a loan cannot be a…
If you seek excitement from your investment portfolio, you are doing it wrong.One of my clients recently asked “Why don’t we invest in hot themes like AI, defense, and other growth stocks? Why only value-focused portfolios?”I asked, “Why do you think we should invest in these hot themes?” He said “I feel we are missing out”Classic – Fear of missing out :)I told him that his investment portfolio is already generating excellent returns close to…
The Secret to Long-Term Investment Success: Focusing on Risk, Not Just ReturnsWhen building an investment portfolio, many focus solely on maximizing returns. But here’s the truth: risk is more important than returns in achieving long-term success.Why? Because risk is something you can control, while returns are unpredictable. Unfortunately, many investors tend to chase high returns in a bull market and panic about risk in a bear market. But seasoned investors, like Warren Buffett, take the opposite approach:“Be…
India’s 1-year G-Sec is trading at 6.75% and 10-year G-sec yields 6.85%. The difference is only 0.10%.5-year G-sec is trading at 6.76%—almost at the same level as 1-year G-sec. This indicates that the yield curve is flat.There is a peculiar situation here. Usually, as the duration of any debt security increases (from the same issuer, in this case, it is GOI), the yield also goes up. Because an investor would want a premium for an investment that…
Real Estate investment never leads to losses. I have heard this from many investors. Is it true?Generally, people look at losses with reference to their initial purchase price. If the investment is sold below the purchase price, it is a loss. If the investment is sold above the purchase price, it is a gain.So, when real estate prices go down, people tend to hold on to their investments and don’t sell them. This gives them…
Yes, why not? But Alas! I can not set up a BLUETOOTH connection between ‘My mind & the AI tool’. Else, I would have let both of them connect directly to ideate, brainstorm, structure, and proof-read the content. Would have been so much time-saving! Even the official LinkedIn website page says…” Don’t ask the tool to come up with ideas for you or help you brainstorm” And also, “Provide specific and detailed information on what you…
A friend who shares her honest opinion with you is more valuable than a friend who agrees with everything that pleases you.We met a prospective client a few days ago and enlightened him about our 0% commission, conflict-free advisory model. The client deals with a wealth manager from a reputed bank. In a display of confidence, he told us how he does thorough due diligence before purchasing a product and does not completely rely upon the recommendations…