Stop sitting on the fence

This article was published in Business Standard on Sunday, September 30, 2012

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After lying low for a number of years, there are several reasons why retail investors should look to the stock market

For the past two years or so, if any retail investor asked a ‘financial expert’ whether this was the right time to invest in the stock market or not, the answer would invariably have been, ‘Refrain for the time being and enter when there is more certainty’. Investors appear to be taking this advice rather seriously.

We read reports in various media as to how retail investors have jettisoned stocks and fled to safer havens such as gold. This phenomenon is not restricted to India alone. The abiding global sentiment prevailing today is that stocks are ‘risky’ and should therefore be avoided. The grief-inducing headlines in various newspapers are further cementing this belief (the past two weeks notwithstanding). Everyone says that they will invest when times are ‘more certain’. Continue reading

The ‘Onion Phenomenon’

 

 

 

Jayant Pai |  jayant@ppfas.com

You may remember that onions had hit a price of Rs. 70 per kg. during the first quarter of 2011. As they became more and more unaffordable, consumption fell steadily. The ensuing hue & cry and the fears of a political backlash motivated the powers-that-be to act swiftly. Consequently, within a few months, the prices were down considerably.  Continue reading

Frozen in the headlights….

Jayant Pai | jayant@ppfas.com

Many market watchers (who have been reduced to doing just that…watching) are flummoxed by the recent move of close to 20% in the broad indices.

While most bulls are busy calculating their gains, the bears as well as many ambivalent fund managers who are saddled with outsized amounts of cash at precisely the wrong time, appear to me like rabbit who have frozen after being caught in the glare of the headlights of an oncoming car. Continue reading