Do it yourself

We wish all our readers Merry Christmas and a Great New Year 2020. Our next post shall be on 6 January 2020. Asset allocation In view of the adverse risk reward ratio and growing divergence between bond and equity yields, I shall scale back my strategic equity allocation to 50% from 60% presently. The strategic asset allocation now stands at 50% Equity; 25% Gold and 25% Debt. (a)    The entire equity allocation shall remain invested. (b)    Gold allocation will be mostly invested in gold bonds. (c)     For now, the debt allocation will be 75% in accrual products and 25% in long duration. However, if benchmark yields rise to 7.5% or above, I shall move the entire allocation to to longer duration. My target return for overall financial asset portfolio for 2019 would be ~8%. Equity investment strategy I would continue to focus on a mix of large and mid cap stocks, with decent solvenc...

The 2019th year of Christ is ending on an disruptive note. Socially & politically, more than half the country is witnessing violent protests and unrest. People appear anxious and divided. The economy is also witnessing one of the sharpest slowdown in more than a decade. The business and consumer confidence has collapsed. More than half the population is witnessing stagflation, with no to negative change in wages and consistent rise in cost of living. The unemployment is on the rise and manufacturing growth is contracting. The expectations of higher, faster and sustainable growth through political stability have been mostly belied. Geopolitical rhetoric is also higher. The uncertainty over trade conflict and Brexit seems to have eased a bit, but these are far from over. The global economic growth momentum continues to be stuck in slow lane. Despite unprecedented monetary and fiscal support, the growth trend has failed to accelerate in most of the advanced economies. The r...

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