[carboy]

Originally Posted by fhdowntheline

Inflation may also be on the rise. Fuel prices are back to the 80s and 90s (in value terms).

Fuel prices are on the rise not because of inflation but because of taxation. So interest rates won't cause any change in that.

[Sree]

Irrational exuberance.

A new series on FT.

[ValarMorghulis]

The market seems to have loved the budget 2021. Went through the roof with best single-day gain In 10 months.
HDFC up 6.2%
SBI 10.2%
ICICI up 12.4%

Even poor performing stocks like PNB (6.9%), IDBI(11.6%) and Yes(4.2%) jumped.

Yet to check out the budget in detail.

[SS80]

Most broking websites and related reviews are predicting SBI to go high even today. Target price for SBI is set at 450+
Is it wise to invest now? Or is it better to "wait & watch"?

[fhdowntheline]

Has anyone on the forum invested using Smallcase ? Whats your view of Smallcase as a strategy as well as from investment safety (in terms of service provider).

[2000rpm]

Originally Posted by SmartCat

Well, if RBI/Fed wants rationality in the stock market, all they have to do is crank up the interest rates. If SBI/ICICI Bank gives 5% interest on FD, money will flee from banks into stock market. Even retired folks will pull out money from FDs to invest in the stock market (since prices seem to be going up all the time).

Hi SMARTCAT,

I am looking to build an equity portfolio for the long term.

What do you think is the best way to assess if the stock price is value for money and hence an accumulation opportunity?

[skchettry]

Originally Posted by fhdowntheline

Has anyone on the forum invested using Smallcase ? Whats your view of Smallcase as a strategy as well as from investment safety (in terms of service provider).

Happy to have someone who is interested in investing through smallcase. In fact I had posted a message on it but it looks either most of the readers are unaware or didn't find value in it.
Yes, I discovered it some 3-4 months back. Have invested in the stock market via 8 smallcases so far (apart from direct stocks) either out of my own studies or through some advisors. One of them is my self built one.
This concept of smallcase is really a brilliant one especially for people like me. You can view the offerings from various publishers, have an idea about their themes, CAGRs and investment risk categories and their charges. Some of them charge hefty 2+% of investment value whereas most of them charge reasonably well. Do also have a look at their backtests especially for the newer ones which get launched after some backtest period. Smallcase itself also charges a very minimal amount and they do provide a good support in case you require.
Rebalances happen either periodically if mentioned clearly and intimations are given through Smallcase app and emails.
My advice would be if you can't pick stocks on your own, this is the tool you may adopt and get professionals guidance.
Regards
Sravan

[SmartCat]

Originally Posted by 2000rpm

I am looking to build an equity portfolio for the long term. What do you think is the best way to assess if the stock price is value for money and hence an accumulation opportunity?

Look for stocks with:

- Low PE Ratio (less than 20)
- High dividend payout ratio (more than 15%)
- High dividend yield (more than 2%)
- High Return on Equity (more than 15%)
- Low debt to equity ratio (less than 1.0)

Within this:

- Look for business/B2B/commercial brands (Eg: IT/pharma, heavy machinery, service industries etc) and consumer brands.
- Avoid finance companies and banks (these are significantly affected by covid type or 2008 type financial crisis). But insurance companies or listed mutual fund companies are OK, since they are not in lending business
- Avoid companies that have declared a loss in the last 10 years
- Avoid companies with huge swings in profits in the last 10 years

However, the above is optional and is likely to cut down the number of stocks in your shortlist. Use www.screener.in to filter stocks

[highlander]

A very good AMA by a hedge fund employee.

https://www.reddit.com/r/AskEconomic...fund_employee/

Topics covered range from the obvious GameStop, Robinhood, Strategies as well as hiring, work hours, and many more.
Folks subscribed to this thread will find it interesting.

[nickatnite]

When all sources of savings give lower returns, people are forced to invest in stock markets and other risky financial instruments. No wonder the number of new brokerage accounts have increased significantly during the last five years.

Conventional wisdom tells us that the rapid ascent of the stock market is a sign of a massive bubble building up and it is bound to burst at some point. It also means that people have started gambling as trust in conventional ways have not yielded any benefits.

I never have and never will have anything to do with the stock market. Caveat Emptor.

[download2live]

Originally Posted by nickatnite

I never have and never will have anything to do with the stock market. Caveat Emptor.

I will suggest you make index tracking fund (with low fees) a part of your portfolio. If your investment horizon is over 10 years then it pays off well. A bit of gold, some real estate and index tracking funds is a good starting point for any person.

This takes out any market research, company balance sheet analysis and what not on user part. The person can then concentrate on his career/business and increase his income. This leads to more investable income. It is a self sustaining cycle.

As you age you gradually move money from index tracking funds to Bonds etc.

It is not that complicated provided one does not get greedy and start pursuing Tesla kind of growth.

[SmartCat]

Originally Posted by nickatnite

I never have and never will have anything to do with the stock market. Caveat Emptor.

When all sources of savings give lower returns, people are forced to invest in stock markets and other risky financial instruments.

I see that you are in NYC area. If somebody in US does NOT want anything to do with stocks, what other investment opportunities does he have? Bonds are risky to invest when interest rates are low and bank deposits yield nothing. Accumulate funds and invest in real estate?

[saket77]

Just like smart cat, I’ll also be interested in knowing what investment avenues are left in the US when the interest rates are next to nil and one still doesn’t want to invest in the stocks.

In fact, I’m myself sitting at the fence here even in Indian market as liquid funds (which carry some risk) are yielding 3.5% returns (against risk free 3% of savings a/c) and I feel it is the time to book profits in your stock holdings. So, where do one park their surplus funds and where to invest for the longer term? I haven’t faced this dilemma in my last 12-13 years of investing. When investing in MF or stocks, other than proper research, I also go by one principle- ‘Be fearful when others are greedy and be greedy when others are fearful’.

I’m fearful as of now.

[SmartCat]

Originally Posted by saket77

In fact, I’m myself sitting at the fence here even in Indian market as liquid funds (which carry some risk) are yielding 3.5% returns (against risk free 3% of savings a/c) and I feel it is the time to book profits in your stock holdings. So, where do one park their surplus funds and where to invest for the longer term?

One option is to invest in stocks that offer dividend yield equivalent to liquid funds returns. Right now, if liquid funds are offering 4% returns, invest only in stocks that offer minimum 4% dividend yield. Such a list contains 30+ stocks as of today
https://www.screener.in/screens/3296...-Yield-Stocks/

Even if stocks tank, you will still get the returns that you were getting in liquid funds anyway (as dividends). But out of this shortlist, stick to business brands and consumer brands as mentioned before. Such companies will have stable dividend payout year after year.

Remember that high dividend yield stocks are not on the radar of most investors & traders. So these are underpriced even in an overheated market. But yes, you might see a temporary 'red' in the portfolio as even these stocks will fall. But then, since these are dividend yield stocks, you will be paid minimum 4% for waiting for stock prices to recover (which they eventually will).

[Fx14]

A query to the experts with respect to the Grandfathered price of split stocks from capital gains perspective :

Suppose the Fair Market Value as on 31st January 2018 (Grandfathered price) of a stock was Rs. 2000/- and the stock is subsequently spilt into 2.

While computing capital gains on sale of shares post the split (for filing returns), should the Fair Market Value as on 31st January 2018 (Grandfathered price) of the stock be stated @ Rs. 2000/- or it has to be adjusted for the split and thus stated @ Rs. 1000/- ?