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Saturday, May 12, 2018

There Are No Safe Havens

Ten years ago in a throwback to simpler times it was easy to plan investments.Twenty years before that it was even simpler - Land and Gold.Or Land or Gold.

Its a different story today and its evolving rapidly.There is nothing called a safe haven anymore.If you have land in the wrong place its not going to appreciate in value.Gold no longer holds that same place.

Bitcoins move up and down faster than elevators at the Burj Khalifa !

PPF, NSC, Kisan Vikas Patra, Post office Schemes are all passe` as interest rates are way down and post inflaton the returns would be negative in real terms.


With Bond Yields at 7.75% and interest rates in no - man's land the wherewithall to create wealth through investments has become a bit of a misnomer.I see many clients still clinging onto Bank Fixed Deposits like the drowning non - swimmer does to the last vestiges of floating plantation on the surface of the water.They just do not know that they will drown - plantation and all !!

But the amount of due - diligence needed to whet companies and businesses is beyond most.Why would Walmart buy a cross....if it wasn't the urge to compete with Amazon.Why would Tatasteel buy Corus and still regret it after 10 years....after all they have the best brains to analyse?

Having said this it is sometimes easier to do what you understand or invest where you think you know the basic Macros.

Equities in the listed space have most financial information available online and especially companies where the products are known and can be categorized.Stick to the simple listed space for those who start out and you most certainly will achieve those financial goals that you have set for yourself.

"All the things that make a trader profitable are difficult to do.Buy initial strength,short initial weakness,buy breakouts,sell breakdowns short and let a winner run with a trailing stoploss and most importantly - cut a loser short and accept when you are wrong" 
quote by Steve Burns

In investing there are 2 important factors

- Believe that there are no safe havens

- Accept when you are wrong and take appropriate measures to deal with the situation

Only growth will generate value in the future.Bet on growth.Buy growth.No matter which business.No what which sector.Everyone knows the ratios....!!!!