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Why money is flowing into equities
Everybody thinks that interest rate will go down from here onwards or at best remain- at current levels.
There is low probability that government securities will touch 9%. But reasonably high probability that either it is going to remain like this or maybe marginally come down.
Tax free bonds are at 6.5%.
Unless there is a crisis globally, gold doesn’t go up.
One year bank fixed deposits are also not going up because credit is not picking up.
The mind is still anchored to 8%.
Then you have properties which is not giving you any return for very long time now.
If you have money where do you invest is the question?
And which is why this flow is happening into equities
–said Anup Bagchi, MD, ICICI Securities
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Linkfest: September 09,2016
Some stuff I am reading today morning:
GST is now law (FE)
The India story looks great (S&P)
Yes Bank defers $1 Billion Sale (Mint)
Earning more is smarter than spending less (Subramoney)
All you need to know about structured products (TRB)
10 Lessons from 10 Years in the markets (RealClearMarkets)
This hedge fund made 2100% (Bloomberg)
Is momentum investing dead? (AA)
A pressure release valve for your portfolio (CS)
Asset Contagion worse than 2008 (Bloomberg)
It is difficult for most investors to believe that the stock market is actually smarter or better informed than they are. – Malkiel & Ellis
— Jason Bond (@bondj008) September 6, 2016
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Charlie Munger on Stock Picking
“[In picking stocks] You really have to know a lot about business. You have to know a lot about competitive advantage. You have to know a lot about the maintainability of competitive advantage. You have to have a mind that quantifies things in terms of value. And you have to be able to compare those values with other values available in the stock market.
The number one idea, is to view a stock as an ownership of the business [and] to judge the staying quality of the business in terms of its competitive advantage. Look for more value in terms of discounted future cash flow than you’re paying for. Move only when you have an advantage. It’s very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor.”-Charlie Munger