A Blind Corner is a turning where you cannot see what is ahead. Blind corner is also applicable to the world of investments, where you do not really know what is going to happen tomorrow. This makes investing a Blind Art, where you need to take educated guesses on what can happen tomorrow. Successful investors have mastered the art of educated guessing or are just plain lucky or both.
In the Blind Corner Blog, I will be talking about a wide variety of subjects, maybe not all pertaining to investments but relating to your life in particular your investing life.
Comments are welcome.
Bull Market Is Just Starting & I am an Idiot
I am an Idiot, as in this bull market, with an extraordinary track record, i am rejecting clients instead of trying to acquire them. Equity markets are on a bull run and is likely to continue on for a while and i am sticking to my target of Sensex 40,000 in 2018. (Click here for our Sensex 40k Presentation).
Every market participant is on a client acquisition mode, selling stocks, mutual funds, AIF’s, PMS products, Structured Products, investment advise and anything else they can lay their hands on. The base of investors is growing rapidly as equity market returns are far far higher than returns on fixed deposits. Pensioners, housewives, professionals, entrepreneurs, students are all getting sucked into the bull market.
Stock prices are jumping everyday with many of the providing multi bagger returns in a period of just a few months. Brokerages are organising company and fund manager/analyst meetings and even as the meeting is progression or has just finished, stock price jumps.
SMSes are being sent on the next multi bagger. Derivates volumes are getting higher and higher everyday. Leverage is rising.
Government is taking full advantage of the equity markets by selling stakes in PSU’s to fund its expenditure. Promoters and private equity investors are offloading stakes at high valuations. Paper supply is increasing at a rapid pace.
PMS, AIF fund managers sell their portfolios to clients and even as they talk about portfolios, stock price jumps as clients front run purchases. Mutual funds are seeing strong flows through SIP’s (Systematic Investment Plans) when investors think SIP is a mutual fund.
Investors are being sold products that they don’t understand and instead of educating themselves they are willing to entrust their life savings in hopes of higher returns.
Having been through four market cycles, i am seeing no difference in the behaviour of both market participants and investors. The end result is always spectacularly sad, investors lose money and risk appetite, many careers, businesses and sometimes even lives are lost and then the next cycle comes.
I would rather hand hold clients through this bull run to the next than trying to generate extraordinary returns to clients looking to get rich quickly. I would rather be an idiot than making the investor an idiot.
Do you want to receive this blog on Whatsapp – Send a WhatsApp Message “Blind Corner” to +919920659677.