Don’t miss the equity market bus

Over the last few quarters, a lot has been written about retail investors being mere spectators as the markets have seen a sharp rebound starting March 2009 and scaling the 20,000 Sensex levels in the consequent pull-back.

Commodities to remain best investment option in 2011

2011 promises to be the year of commodities. Every global event in the last three years has either been triggered by commodities or has, in a roundabout way, led to increased influence of commodity prices on the macro-economic environment. Even in the currency wars, commodity currencies like the Australian dollar and Brazilian Real have shown genuine muscle and there is nothing on the horizon to show that ...

Keep 25% of assets in gold; here is why

More than at any other time in history, conditions today are most favourable for gold prices to move up. All major factors that affect gold prices point to a significant increase in the coming year and for those who invest now, a return in the range of 25 per cent is not improbable. Disclaim­ers in place, I would venture for a target price of Rs 25,000 per 10 gm by the end of 2011.

New Year Resolution

It is that time of the year again when people start making New Year’s resolutions and also sketch out their investment strategies for the year ahead, keeping their return expectations and risk appetite in mind. After all, well begun is half done, as it is generally believed. The problem, however, is that a majority of investors are still reeling under the impact of economic meltdown and are more or l...

It is our currency and your problem

Unlike the G-20 summit in London last year, the recent meet in Seoul was unable to come up with a concrete action plan. Be that as it may, the situation today is strikingly complex and in fact, has a lot to do with knotty issues thrown up as a consequence of the decision in London for intensive and collaborative action to combat the financial crisis. Announcements of quantitative easing sequentially by western economies arguab...

Warehouse receipts - out of cold storage

After credit cards,EMIs,PE and electronic trading,yet another imported financial innovation is poised to grow exponentially in India. It is a financial product which touches the very heart of India - agri-commodities.

The concept is simple - unlock stored value by giving finance secured against goods deposited in an independently controlled warehouse. Receipts given by an approved wa...

Indian Financial Markets-2020

Demographic dividend combined with a burgeoning middle class already bigger than the US population provides a platform for India to become one of the largest economies by 2020. One of the key segments that will drive this growth will be the financial services sector that will help productively channelize domestic savings and induce capital flows from developed markets back to the increasi...

Retire on equity

Gone are the days when investing in equity was considered as risky as gambling. Today equity is bound to top the list of long-term investment options for many. While markets do offer opportunities to earn quick returns, the risk-reward ratio is more favourable over the long-term.

The equity approach to retirement

A retirement investment plan must take into consideration the one constant in any stock market ̵...

MONSOON - Currently the most critical aspect for Indian markets

Agricultural Output- Most crops are dependent on rains – and that too in just sufficient amounts.Too heavy or too low rains can damage the crop. Last year we saw droughts in states like AP during May-June which was the sowing period for some crops. Later on, we witnessed floods during September which again destroyed whatever standing crop was there. The Kharif crop production was affected considerably though late rains helped the winter-...

Agri Commodities Volumes – All set to fire up

The last few weeks have seen a substantial rise in Agri Commodities volumes.

Though there has been a consistent rise in the figures over the last 1 ½ years, the current levels have been the highest since the inception of the Exchanges. And more importantly, this rise is not limited to 1 or 2 commodities. It is a...

Volatility more in our minds

Investors have been subjected to a lot of negative news in recent months, which brought back unpleasant memories of 2008 and early 2009. Greece, which not so long ago was a source of pleasure as a holiday destination, is now referred to more in the context of the pain it has inflicted on financial markets.

Along the way, investors have been subjected to the new acronym of PIIGS (Portugal, Ireland, Italy, Gr...

Know your risk appetite before taking a plunge

Batman does not need life insurance. He certainly needs a wealth manager though. Bruce Wayne (Batman during the day) has no family dependants and therefore does not require life insurance.

However, he has an industrial empire generating a large amount of wealth which needs to be preserved, grown and managed efficiently. Homer Simpson, on the other hand,...

Price fluctuation in crude oil is really amazing

In December 1998, crude oil prices were around $10 per barrel. Almost ten years later, in July 2008, prices touched $147 and once again saw a precipitous crash which stopped only at $33 only to rebound once again to $86 in April 2010. As I write the article, it is $70 in mid-May. In fact, the last one year has seen crude oil rise 10% but from January 2010, we are down 15% in May.

Now that is what I call volatility! And it only seems to get better – or worse depen...