Friday, 31 July 2020

Financial Markets @ July 2020

Market is scaling every day. Investors are after Reliance. On the other side of the coin i.e. apart from 15/16 stocks there is no significant movement about other nifty stocks, forget about Mid Cap and Small Cap.
There is lesson to be learnt from history here…, in 1990s, the Imperial Palace in Tokyo of the Japanese Emperor was worth more than all combined real estate in California. It told you that Japanese real estate was extremely overvalued. Similarly, in 1999, Infosys NSE 0.47 % was worth more than the entire market cap of the cement and steel sector in 1999. Wipro NSE -1.11 % was worth more than the market cap of the entire cement and steel sector. In 2007, DLF was worth more than the market cap of the entire pharma sector. Today, for example, FANGMAN stocks (Facebook, Apple, Google, NVIDIA, Microsoft, Amazon and Netflix) are worth more than the GDP of different countries, put together. We all know what happened next. Markets would be behaving in unexpected way going forward for at least another two quarters.
Asset allocation should be the mantra including debt and Gold. The gap between the yield to maturity of credit funds and the repo, reverse repo rate of the Indian market is at its highest. This indicates that credit risk funds are at their lowest valuation making it one of the most interesting categories to invest in lump sum for the long term.

The generic SIP is all season investment vehicle should be pursued very strongly segregating between different class of asset depending upon the investment horizon and risk appetite.

Happy Investing!

12 comments:

  1. This information is meaningful and magnificent which you have shared here about theBaby Coming Soon Announcement . I am impressed by the details that you have shared in this post and It reveals how nicely you understand this subject. I would like to thanks for sharing this article here.Baby Coming Soon Announcement Disc Australia

    ReplyDelete
  2. Great job for publishing such a nice article. Your article isn’t only useful but it is additionally really informative. Thank you because you have been willing to share information with us.USA tools and equipment for sale online

    ReplyDelete
  3. This is really a good source of information, I will often follow it to know more information and expand my knowledge, I think everyone should know it, thanks best lost money recovery services service provider.

    ReplyDelete
  4. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed material. Fantastic read. Best scammed by online trading service provider.

    ReplyDelete
  5. After a long time, I read a very beautiful and very important article that I enjoyed reading. I have found that this article has many important points, I sincerely thank the admin of this website for sharing it. Best investment recovery service service provider.

    ReplyDelete
  6. Thank you so much for sharing this blog with us. It provides a collection of useful information. You obviously put a lot of effort into it! Best Online financial planning advice service provider.

    ReplyDelete
  7. This is very educational content and written well for a change. It's nice to see that some people still understand how to write a quality post.! Best i need a hacker to change my grades service provider.

    ReplyDelete
  8. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed material. Fantastic read. Best hire a hacker for snapchat Services Provider

    ReplyDelete
  9. This is really a good source of information, I will often follow it to know more information and expand my knowledge, I think everyone should know it, thanks Best cryptocurrency scam recovery service provider.

    ReplyDelete
  10. I found one successful example of this truth through this blog. I am going to use such information now. Trade Forex CFD

    ReplyDelete
  11. I really enjoyed reading your blog. It was very well written and easy to understand. Unlike other blogs that I have read which are actually not very good. Thank you so much!
    Appointment Booking App Development Services

    ReplyDelete