Do it yourself

Before going on the Diwali break, I had mentioned some of the investment strategy challenges ( see here ) that a tiny investor like myself is facing due to sharp divergence in the macroeconomic evidence and market performance. Speaking specifically in the Indian context, the macroeconomic evidence is not particularly strong to support the investors’ enthusiasm. The market participants are spinning new stories to overcome every new challenge. For example, consider the following— Overheated consumer credit market Last month, the Reserve Bank of India expressed concerns about the overheating consumer finance market. His statement read,  “Certain components of personal loans are, however, recording very high growth. These are being closely monitored by the Reserve Bank for any signs of incipient stress. Banks and NBFCs would be well advised to strengthen their internal surveillance mechanisms, address the build-up of risks, if any, and institute suitable safeguards in their own interes...

Two inquisitions from readers in past one week have kept my mind occupied for most of the week. The questions are not new; rather these are the most routine questions I get from readers (usually small individual investors). I have answered it many times. But still I keep getting it repeatedly, even from the same people. This makes me wonder why do we investors refuse to learn the art of investing, despite an abundance of wisdom easily available for free on the internet and our own experiences! The inquisitions were: (a)    Yes Bank is down more than 95% from its 2018 peak. How much more it can fall? Can I buy this? (b)    ITC is up more than 40% from its recent lows. Should I buy it or wait for correction? Well, I cannot comment on stock specific queries. But let me answer it the following way. Please note that this is only for illustration purposes and not an investment advice. (a)    15yrs ago, Suzlon Energy Limited, a renewable energy major, ...