August 25, 2024 | Read Online
Dead Man Walking - Which of these are the proverbial phoenix and which are part of a Voodoo trick designed to trap you???
Some very notorious names in this list (Apart from Suzlon which had borne the brunt of a potentially bad industry cycle, all others have had issues of corporate governance, frauds and high leverage- Be very very careful before you indulge in any of them)
US Fed signals a rate cut is on the cards soon.
Nifty looks tired at 25k levels and the next push could come from FII’s and banks. The current lot of stocks that has propelled the rally seem to have been done for a large part of the year.
We remain of the view that hold on to our stakes as liquidity and sector/theme rotation could keep markets buoyant, however for incremental lump sum bets (especially if high on equities already) we would want to be fearful now.
We continue to be positive on large caps and DSP MF’s new fund that buys the top 10 companies could be a good tactical bet (Note – Tactical, “ NOT buy and forget”) P.s – Not a sponsored suggestion.
On US stocks, as the elections come closer the outcome would determine the future course. In the current scheme of things, a Trump presidency is surely to be better for the US and is expected to be cheered by the markets. We remain a buyer on the Nasdaq closer to 16,500 levels and partial sellers beyond 18k-18.5k levels. (Big Tech could itself undergo a big change in leaderboard over the next few years and hence sticking to the index (Nasdaq) is wise Vs going for individual stocks or themes like FAANG etc?
Q. Hi Team, as a P2P investor in a well known product through a well known platform I am stuck and unable to withdraw my investments with the new RBI regulation. What shall I do here?
Answer: Hello, thanks for reaching out on such a personal matter. Our newsletter as since inception tried to keep a stance very clear that we intend to stay clear of unregulated investments i.e. Any investment product that is not seen favourably by the government and does not have a proper regulator that you can fall back on. Whether it be crypto, digital currencies, exotic investments and now P2P the government with new regulations and taxes signals its discomfort with such measures.
Fortunately we don’t feel the investments could be at a major risk especially in pooled vehicles with large P2P platforms as the credit cycle is positive and we believe with specific caveat that this is “highly case to case basis” the ones that were immediately liquid should be repaid.
The interim liquidity should be managed by liquidating and bringing your asset allocation to normal. Despite the risk of speculation it's possible your equity allocation is warped and now could be a good idea to bring it back to parity.
Lastly avoid any investment that is unregulated and unless the product is liquid, promises of premature liquidity should be considered with a pinch of salt.
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