• Historically, a decline of 60% has happened only once and lasted for 4 days – this is too rare• Historically, declines of 50% have been extremely short lived (2-4 months) and very rare• While you are always tempted to keep waiting for further declines to deploy your cash or a portion of your debt allocation into equities, given the current attractive valuations, a 40-50% decline levels is good enough to deploy a significant portion• That being said, we also need to factor in the case where the markets may recover even without hitting a 40% decline. … [Read more...] about Equity investment – should we invest all at once or in a staggered manner?
Investing activities statement of cash flows
"Tourism and travel industry will take the longest to revive. Cash flow is nearly dead. Around 6-7 crore jobs are either directly or indirectly dependent on the tourism industry. Without cash flow, it will be difficult for the industry to pay salaries and license dues to states," said Jyotsna Suri, CMD, Lalit Suri Hospitality Group. … [Read more...] about Inbound travel may see negligible business until September: Industry experts
Q) What are your views on the financial space? Does it look like the smart money is moving from financials towards defensives' names?A) Yes, the money is moving to Pharma and FMCG sector. Pharma stocks, which had lost the tag of "safe" stocks, have partially got it back, courtesy of the virus. … [Read more...] about ‘SBI Life Insurance could turn out to be a multibagger in the next 5 years’
Bernanke says “no one is recommending the use of such policies in ordinary times; it’s precisely in the most difficult or extreme circumstances, in which other monetary and fiscal tools might be unavailable or ineffective, that MFFPs might be considered.” The way to work around independence issues is that US Government passes a statute wherein a special account is created at the Federal Reserve. If the Government requests funds under MFFP, the Federal Reserve alone can determine whether there is a case for MFFP and accordingly credit the account. The Government will have to use the funds judiciously towards real resources and if funds remain unspent in a given time, the Federal Reserve can withdraw the funds. … [Read more...] about The Money Helicopters are on their way
“A BCG document, illustrating one scenario of how the COVID-19 virus might progress globally, has been circulating publicly without context or authorization from BCG. The projections contained in the document vary by 100-1000x, and were built to study one range of possible outcomes. This document does not represent an “official BCG view,” nor does it purport to state how the pandemic will pan out,” it said in the statement. … [Read more...] about India may not lift coronavirus lockdown before September, study says