Do it yourself

Thought for the day ” There are only two mistakes one can make along the road to truth; not going all the way, and not starting.” -           Buddha (563-483BC) Word for the day F lippant (adj) Lacking proper seriousness or respect; showing inappropriate levity; (Source: Dictionary.com) Teaser for the day What does our constitution says about functioning of Judiciary? Does the spirit of constitution afford the executive the luxury of choosing judges of their liking?   There are few things money can't buy A careful analysis of the incumbent NDA government (I actually prefer to call it Modi government for obvious reasons) would make it clear that the economic agenda of the government is laced with socio-cultural considerations. While it could be a matter of concern for some left inclined observers and economists, I do not find any element of incongruence in this. ...

Thought for the day ”Three things cannot be long hidden: the sun, the moon, and the truth.” -           Buddha (563-483BC) Word for the day E uthenics (n) A science concerned with bettering the condition of human beings through the improvement of their environment. (Source: Dictionary.com) Teaser for the day Did Sonia Gandhi invite Narendra Modi for Iftar party hosted by her? If not, does it bother you? If yes, and Modi did not attend, does it bother you even more? This one may take some time The return on investment in publically traded equity is broadly a function of 3 factors (a) earnings growth; (b) changes in price earnings (PE) ratio and (c) dividend. Amongst these earnings growth is primary driver for a sustainable up move in equity prices. The higher PE ratio and dividend yield usually follow the higher earnings trajectory. The 50%+ gain in bench...

Thought for the day ” Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment.” -           Buddha (563-483BC) Word for the day Ardor (n) Great warmth of feeling; fervor; passion (Source: Dictionary.com) Teaser for the day All those who watched Salman Khan starrer "Kick" on weekend are still finding it painful to sit! The movie is a part of Bhai and Nadiadwala's campaign against "sedentary lifestyle". No pun intended. Alternatives becoming less attractive One of the primary conditions for a sustainable bull market in equities is relative lower expected return from alternatives like gold, fixed income, USD and oil etc. In past six months return on Indian equities has materially outperformed gold, crude oil and USD. Considering that energy prices have remained mostly stable during recent war like situations in Ukrai...

Thought for the day ”It seems, in fact, as though the second half of a man's life is made up of nothing, but the habits he has accumulated during the first half.” -           Fyodor Dostoevsky (Russian, 1821-1881) Word for the day F arceur (n) A joker; A wag (Source: Dictionary.com) Teaser for the day Will the caged parrot make his   master Sing? Greed overwhelming fear One of the critical condition for a sustainable bull market is the exuberance and optimism of investors and traders. Greed of investors and traders as defined by his eagerness to take higher risk for some extra return usually leads to PE rerating of the market. A greedy investor or trader ventures out of his comfort zone and explores newer opportunities. P&L, especially projected topline of P&L,   becomes the dominant evaluation matrix against the balance sheet in fearful days. I i...

Thought for the day ” There is no subject so old that something new cannot be said about it.” -           Fyodor Dostoevsky (Russian, 1821-1881) Word for the day Laden (adj) Burdened; loaded down. (Source: Dictionary.com) Teaser for the day Could the Maharashtra Sadan event have material impact on Maharashtra state legislative elections scheduled later this year? Low volatility - higher prices For a bull market to occur many pre-conditions need to be satisfied. Some of these conditions could be listed as follows: (a)    Lower volatility; (b)    Greed overcoming fear; (c)    Lower expected return from alternatives like gold and bonds; (d)    Sustained improvement in corporate fundamentals, especially earnings growth led by pricing power (better margins not because of cost control) higher RoE (higher creditworth...

Thought for the day ” Deprived of meaningful work, men and women lose their reason for existence; they go stark, raving mad.” -           Fyodor Dostoevsky (Russian, 1821-1881) Word for the day Facsimile (n) An exact copy, as of a book, painting, or manuscript. (Source: Dictionary.com) Teaser for the day Is it right time for the Congress Party to transform into a federation of regional parties (Each state with its own Congress) versus a unified central command?.   Put money on the table Investment strategy, like any other, requires clear definition of goals and timeline for achieving those goals. The goals need to be defined considering the likely challenges on the way to achieving such goals. Defining goals which are subject to even foreseeable eventualities would make strategy a sub-standard piece of mere academic interest. For example, an investment strategy which defines it...

Thought for the day ”It is not possible to eat me without insisting that I sing praises of my devourer?” -           Fyodor Dostoevsky (Russian, 1821-1881) Word for the day Moniker (n) A person's name, especially a nickname or alias. (Source: Dictionary.com) Teaser for the day How Jaitley's "Growth for poverty" is different from Nehru's "unbalanced growth" model?   Money debasement is norm, tighter policy exception “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” - Milton Friedman In classical economic theory inflation is always a monetary phenomenon. Seasonal factors or sudden supply shocks affect prices to a limited extent. Such instances of price rise are invariably temporary and self correcting. In recent times, however we have seen multiple challenges to this classic economi...