Renowned organizations such Netflix and Facebook which value risk as key factor in determining sustainability have this concept called chaos monkey whose job is to randomly cause disruptions within the system to constantly check the reliability of the system from the external and internal shocks. Similarly, it is worth checking the quality of stocks and reliability of portfolios to prepare for the worst. Like Graham said, investors who build a margin of safety which is good enough to take care of our mistakes and shocks in the market, have a huge advantage in the long run. … [Read more...] about A little philosophy to preserve your sanity in these treacherous markets
"While it is too early to forecast the impact of the coronavirus (COVID-19) pandemic on India's GDP and hence the corporate earnings growth, if things don't settle down in a month's time, we could be glaring at low single digit or even no growth in corporate earnings in FY21," Deepak Jasani, Head Retail Research at HDFC Securities tells Moneycontrol's Sunil Shankar Matkar. … [Read more...] about ‘Market can break recent lows, no earnings growth in FY21 if COVID-19 uncontrolled’
"So we are considering options of selling these bonds to LIC (Life Insurance Corp of India) or RBI (Reserve Bank of India). We might still look at a small borrowing from the market, but all options are on the table," he said, adding that the government could also use the central bank's ways-and-means facility - an overdraft facility the RBI offers to the state - to address any immediate cash needs. … [Read more...] about India may slash borrowing from market in April amid lockdown
Having a predominance of credit-risk funds or long-duration funds is not advisable.Q) Gold, oil and equities all moving in one direction. How should investors read this?A) This is one of those times when logical arguments lose their relevance. Just as we saw frenzy on the bullish side (companies without any profits trading at exorbitant valuations), now we are seeing a frenzy on the bearish side (excellent companies with strong balance sheets and fundamentals available at decade-low valuations). … [Read more...] about ‘Spread your overall portfolio into 3 or 4 funds that are reasonably different’
“There have been instances of loss of invested capital, hence the investor must ensure that he should not end up into value trap in pursuit of high dividend,” he said. Bobade further added that investors should check the source of cash used for a dividend to ensure that the business generates sufficient cash for dividend distribution. … [Read more...] about High-dividend stocks seem safe bet in times of uncertainty; which one should you buy?