“Try to be non-consensus and go right. Market will consistently overvalue favoured stocks and undervalue out of favour stocks. Market will find itself over optimistic on forecast of best stocks and too pessimistic on those of worst stocks.”, @Ihabdalwai (7/n)
“Trick is to avoid investing in sectors or markets, where investment spending is unduly elevated & competition is fierce, and to put one’s money to work where capital expenditure is depressed, competitive conditions are more favourable. (8/n)
Interest rates fall as countries move up the economic ladder. Despite the recent increases, overall yields have shown a downtrend for growing economies. (12/n)
Winners can quickly become losers, and vice versa. Government Securities were at the top in 2016 and the bottom in 2017. Gold rose from the bottom of the pile in 2021 to be the leader in 2022.
- Patience is a good virtue!
- Investing is counter-intuitive
- Seek long-term performance!
- Valuation matters! Can’t overpay even for a great business. (21/n)
Investors thought that gold wouldn’t do well. The post-COVID rally in #cryptos spooked the prospects of gold & added to that conviction. But that conviction has proved to be short-lived, and gold did exceptionally well in 2022. (3/n)
Looking closely, we find that India’s inflation is well controlled, ATH FX reserves have acted well as a shock absorber against volatility, and our GDP growth expectations is one the highest in the world!
Based on the RBI’s assessment, the Real GDP projection is retained at 7.2% for FY23. This comes on the back of strong investment activity, improving bank credit and rising capacity expansion.
With the introduction of the Asset quality review in FY15-16, banks' asset quality has been under pressure. This was further aggravated by events such as demonetisation, GST, and the IL&FS crisis. As a result, the GNPA ratio for Banks rose to 11.2% in FY18 vs 4.3% in FY15. (3/8)