Going beyond the bulls and bears

If you thought that there are bulls and bears in the market, you are grossly mistaken. The market has always been about opportunities and always will be about opportunities. A bull will not keep buying even when they see a shorting opportunity and the same holds true for the bears. Remember the old adage in the market, “Bulls and bears may make money but pigs always get slaughtered”

Bullish and bearish are just states of mind…

Are you bearish or bullish on markets? Is this not the question you have heard umpteen times? Quite a tough question! What do you do in this kind of a market where the Nifty has moves up 80% from 5200 levels in August 2013 to 9100 levels in Mar 2015? And then, the market volatility intimidates and threatens to give it all up. Continue reading “Going beyond the bulls and bears”

Does OPEC matter?

How the OPEC is gradually losing its relevance…

For close to 55 years, the OPEC virtually held sway over the oil markets. Remember, it was the OPEC that created the Oil Shock of 1973 as well as the crisis of 1998 that almost brought Russia to its knees. OPEC comprises of oil producing nations of Latin America, Africa and the Middle East. For years Saudi Arabia, as the largest producer of crude oil in the world, was the virtual monarch of OPEC. All that has changed in the last couple of years! Here is why. Continue reading “Does OPEC matter?”

Tackling volatility

What should be your strategy in these volatile markets…?

The market index, like it happens so often, does not tell the whole story. From its peak, immediately after the Union Budget, the Nifty has corrected close to 13%. But, scratch the surface and the real story starts unfolding. You have companies like Sun Pharma, Lupin, and Asian Paints that have corrected over 20% during the same period. Private Banks have been through a similar ordeal. I am not even talking about PSU banks, which have lost half of their value. What does this mean for investors and how to approach markets? Continue reading “Tackling volatility”

Create your own trading rule book

What does a trading rule book mean?

It is a set of rules and discipline points you will not transgress at any cost. You will not deplete more than 20% of your initial capital. As a 50-year old person you will not have more than 40% of your money in equities. You will make it a point to book profits if returns on a stock cross 30% in a quarter. And you will be out of equities at a market p/e of over 25. So on. Continue reading “Create your own trading rule book”

No more rate cuts?

Was that the hidden message in the RBI credit policy?

Why were markets sorely disappointed with the RBI credit policy? To be fair, the markets were expecting a 25 basis points cut in the interest rates and that is exactly what Dr. Rajan delivered. The real story was possibly hidden behind the reams of data and text that comprised the credit policy. The message was that India Inc should forget about further rate cuts. Continue reading “No more rate cuts?”