September - Is this the beginning of the rally or a bubble ?

The policy announcements in US and India in September and earlier by ‘ Super’ Mario ( the ECB Chairman) have rallied the world markets. The ‘sentiments’ in the equity market have sparked optimism. But then, the political equations can never be   foretold. There is a dichotomy between politics and economics   The pronouncements by the ECB and Fed Reserve points  towards one thing , as of now – the QE ( Quantitative Easing ) , or in layman terms – the printing of notes will continue to spur growth. 

Our take is that – in the long run ( well , the definition of long term , in this context is blurred and do not want to take any guess) , the world economy can go in a tailspin. But , right now, the rallies will definitely make you paper rich ( Remember, its only when you sell and realise your gains that you make a gain).

With the CRR cut and more cuts expected later, long term debt products should deliver attractive returns.

 So the strategy will be again simple .

·         Have a goal based investing strategy .

·         Get your asset allocation right.

·         Believe in your strategy and have patience.

Also make periodic sells to realise your gains.

Do understand, investing is today is a core activity.  Understand the product  / asset , before investing and once invested , have faith and make your gain

Wealth Creation - A journey and not a destination

A journey begins with a small step and then as you go along, you reach the destination, you first wanted to reach. But then a human being is a different animal. He’s not satisfied. He wants more, and that too quickly. He’s greedy. And then a new journey begins for a newer destination.  So enjoy each of the journeys

 The goal will be different in  each of the periods :

Say till you are 22 -24 years, you are building the  basic skills, wherein you study and get the various degrees.

Let me try to put a framework n this journey / destination :

·         Age  25-30 – Early days, new money , enjoying the money, fulfilling the basic needs – moreso,  consuming more rather than saving .

·         Age  30-35 – You realise the need to save and accumulate some monies. ( Marriage, kids, emi’s all come in play)

·         Age 35-45 – You work crazy to accumulate assets .

·         Age 45-50  - You realise you have to accumulate more, as inflation is eating into the assets and the new gadgets and lifestyle looks too good to lose.

·         Age 50 – 55 – Again work crazy  and invest for retirement.

·         Age 55 onwards – Ponder as to how much should I save for a retired life.

The above may not be true in all cases.

Wrote a piece on retirement in Financial Express . Do check the link

http://www.financialexpress.com/news/cash-flow-key-factor-in-planning-for-retirement/1000689/0

In today’s world, one thing which we you need to understand is that each one of you need to be financially literate. Do understand that its your money and you know the best. ( the product manufacturers, the brokers, the intermediaries are all enablers who needs to be used only as a guide for wealth creation)

In the World of Investing - Find out your enemy

Are you your own enemy ? Find out ....

My take in this piece in Financial Express .

http://www.financialexpress.com/news/tactical-asset-allocation-pays-handsome-dividends/835663/0

Benchmark the returns

So you follow the index or sensex or what is the other name nifty. Well... you're not alone. But is this the true representative to benchmark your expected return ?

My take on setting the benchmark index in the piece in Financial Express is shared below:

http://www.financialexpress.com/news/the-basics-of-tracking-a-benchmark-index/980043/0

Financial Literacy

Buyer Beware... ccreams at you, when you buy. Do you know the basics or do you want to know the basics ????

Financial literacy is a must for all and my take on the same in this article in Financial Express.

http://www.financialexpress.com/news/why-financial-literacy-is-crucial-for-all-players-involved/987922/0

Health Insurance - Why do you neglect

Health is Wealth - goes a old saying. And majority of us, happily ignore it. Sharing how and why you should have one , through my article in Financial Express - check the link below

http://www.financialexpress.com/news/health-is-wealth-why-you-shouldnt-ignore-this-cover/969506/0

Mid Term Review - Investment Strategy - 2012

5 months is a good time to review the portfolio. As a follow-up to the strategy which was suggested on 3rd Jan'12, in the  article in Financial Express, sharing the recommended strategy post the mid-term review .

This article appeared again in the Financial Express on 5th June'12 - the link shared below:
http://www.financialexpress.com/news/its-time-for-a-midterm-review-of-your-portfoilo/957931/0

Again, I would restate that Asset allocation alongwith goal based investing is the key. Accept volatality as your friend. Happy investing.