15 years of financial services this year. 15 learnings in this thread about markets, personal finance and surviving this industry. Learned through multiple countries countries, one start up, many roles, and most of all, a lot of mistakes!
2005 - 2006
(Analyst days on Wall Street)
1. The reality of markets is much beyond the books. Markets have to be lived with real $!
2. Markets are so inter-linked! If you say I’m an equity guy but don’t know debt, or know India but not global markets, you know nothing!
(Analyst days on Wall Street)
1. The reality of markets is much beyond the books. Markets have to be lived with real $!
2. Markets are so inter-linked! If you say I’m an equity guy but don’t know debt, or know India but not global markets, you know nothing!
2007 - 2008
(Quant crisis, GFC)
3. The world can change in a day. Completely uncorrelated things get correlated in a crisis and blow up together.
4. Asset allocation matters. Debt gives you staying power, and investing is a marathon.
(Quant crisis, GFC)
3. The world can change in a day. Completely uncorrelated things get correlated in a crisis and blow up together.
4. Asset allocation matters. Debt gives you staying power, and investing is a marathon.
2009 - 2010
(The US recovery, back to India)
5. Liquidity is your best friend in a crisis. When you don’t have it, you make sub optimal decisions.
6. Finance creates complex products that consumers want. Consumers need simplicity. Seek simple solutions.
(The US recovery, back to India)
5. Liquidity is your best friend in a crisis. When you don’t have it, you make sub optimal decisions.
6. Finance creates complex products that consumers want. Consumers need simplicity. Seek simple solutions.
2011 - 2012
(Scaling up Forefront)
7. In India finance is a greenfield. New asset classes, new regulations, new opportunities. You have to keep up the curve as an investor - even if you don’t invest in them!
8. As investors we love to take action. It kills us. Be still.
(Scaling up Forefront)
7. In India finance is a greenfield. New asset classes, new regulations, new opportunities. You have to keep up the curve as an investor - even if you don’t invest in them!
8. As investors we love to take action. It kills us. Be still.
2013 - 2014
(Taper tantrum, end of NSEL)
9. In finance the best opportunities are when everyone thinks the world will truly end. Circa 2013.
10. People will do anything and believe any story to earn a little more than FD consistency. Including take capital risk. Don’t do it!
(Taper tantrum, end of NSEL)
9. In finance the best opportunities are when everyone thinks the world will truly end. Circa 2013.
10. People will do anything and believe any story to earn a little more than FD consistency. Including take capital risk. Don’t do it!
2015 - 2016
(The big bull)
11. Funds need mandates, just like countries need constitutions. Understand a fund’s mandate - what it can and cannot do - and you will be a happy investor.
12. We love heroes and create investing Gods. We wonder why they fail us. Don’t do it!
(The big bull)
11. Funds need mandates, just like countries need constitutions. Understand a fund’s mandate - what it can and cannot do - and you will be a happy investor.
12. We love heroes and create investing Gods. We wonder why they fail us. Don’t do it!
2017 - 2018
(Demon and thereafter)
13. This is an industry that loves predictions. Feeds on them. But predictions never work - anyone remember the doom predicted in markets post demon?
14. Mistakes are made in bull markets. They just unwind in bear markets. E.g. leverage
(Demon and thereafter)
13. This is an industry that loves predictions. Feeds on them. But predictions never work - anyone remember the doom predicted in markets post demon?
14. Mistakes are made in bull markets. They just unwind in bear markets. E.g. leverage
2019 - 2010
(The correction and today)
15. No two financial crises are the same. They never can be. History doesn’t repeat - but you know, it truly does rhyme. Going through one crisis makes you much more prepared for the other.
(The correction and today)
15. No two financial crises are the same. They never can be. History doesn’t repeat - but you know, it truly does rhyme. Going through one crisis makes you much more prepared for the other.
