Riding bulls & bears together
Asset allocation and diversification are not important for just risk management, but also for creating a permanent bull market in your portfolio, opines these two frontline money managers. Being a one trick, the equity bull market doesn’t help when the bear attacks. Here’s more on how to create a permanent bull run in your portfolio.
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Spending is of paramount importance
Loose monetary policy has done its job of providing easy money supply through credit but that is not enough to boost growth. Hence, the Economic Survey 2021 is asking the government to do more fiscal push. The Chief Economic Adviser argued in the Economic Survey that India’s demand-side policy underscored the “idea that pressing on the accelerator while the brakes are clamped only wastes scarce fuel.” Read here for more on the CEA’s take on fiscal spending.
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Buckle up for a rough ride
It’s always wise to learn from history, and history shows that Budget means volatility on Dalal Street. In the last seven full-year Budgets that the Modi government has presented, Sensex fell up to 4 per cent post Budget on four occasions, and delivered up to 7 per cent returns in the remaining three. And going by the past data, the market has just seen one of the worst performances ahead of the Union Budget in 15 years. Here’s more.
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‘GameStop’ ripple effect on India?
Retail investors systematically attacked major hedge funds by forcing a short squeeze that cost them billions of dollars in the GameStop stock last week. Although the Indian market is much regulated to even take such short positions or to drive the price up exponentially, views are that India would feel the heat when such stocks tank in the near future.
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