Tag: reading

Being in it for the long haul

Fidelity has an interesting study out. The whole thing is worth a full read here.

While the only predictable thing about market behavior is its unpredictability, history has shown repeatedly that continued plan contribution and diversified, age-based asset allocation has delivered better results over time. During turbulent times, a steady course is most often the best one. A reactionary approach, including a focus on short-term market activity and related attempts to time the market, typically leads to poorer outcomes in the long term.

401k chart


Besides, how you diversify matters greatly. BlackRock:

The fact is that in times of stress, correlations of stocks and bonds rises greatly. And a traditionally diversified portfolio contains a high degree of equity risk.


asset allocation


Read the whole thing here.

Preetam’s List

Market Roundup: Dow +0.33% to 13825. S&P flat. Gold -0.04% to $1667. London+1.09%. Germany +0.53%. France +0.70%.

BSE Ltd will float its initial public offer (IPO) in the first quarter of fiscal 2014 through the offer-for-sale (OFS) route. “If the company at is valued at Rs.4,000 crore, the exchange will dilute only 10% to raise Rs.400 crore through the IPO, but if the valuation is lower, 25% stake of the existing shareholders could be sold through the IPO. (MINT)

SKS Microfinance Ltd, [stockquote]SKSMICRO[/stockquote] India’s only listed micro lender, ended a seven-quarter loss-making streak on Thursday by posting a small profit for the three months ended 31 December, helped by higher loan demand in markets outside of Andhra Pradesh and significant cost cuts. (Businessline)

Jaguar Land Rover Ltd (JLR) negative announcements regarding lower profitability, increased capital expenditure and the consequent negative free cash flows led to a dramatic fall of TATA MOTORS Ltd. [stockquote]TATAMOTORS[/stockquote] , [stockquote]TATAMTRDVR[/stockquote]. JLR accounts for around 90% of net profit and 75% of net sales. (MINT)

Natural decline in output from some of the natural gas producing fields coupled with continued fall in output from the country’s largest fields saw the domestic production fall for the 25th straight month in December. To meet the growing petroleum product demand and no significant increase in indigenous output, the domestic refiners were compelled to import more crude oil in December year-on-year. [stockquote]RELIANCE[/stockquote],[stockquote]GAIL[/stockquote],[stockquote]PETRONET[/stockquote]. (Businessline)

An unlikely partnership between profitable FMCG companies like Hindustan Unilevert[stockquote]HINDUNILVR[/stockquote] and Dabur [stockquote]DABUR[/stockquote] and penniless rag-pickers is now offering a hint of a fix to India’s 12,000 tonnes a day plastic junk pile-up. A new way of CSR? (ET)

Happy weekend!!

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Preetam’s List

Market Roundup: Dow +0.49% to 13779. S&P +0.15% to 1495. Gold -0.17% to $1683. London +0.30%. Germany +0.15%. France -0.40%.

Bharti Airtel Ltd [stockquote]BHARTIARTL[/stockquote] India’s biggest phone company, and No. 4 Idea Cellular Ltd [stockquote]IDEA[/stockquote] on Wednesday reduced the discounts and freebies on offer to customers in telecom zones across the country, effectively raising calling costs for mobile phone users. Vodafone India Ltd, the second biggest mobile phone operator, is expected to follow suit. Will this be sufficient to deliver a significant enough boost to the revenue of the telcos that are hurting because of increased costs, competition and spending on spectrum. (MINT)

SEBI has notified norms that make it mandatory for investment advisers to register with the capital market regulator and also require them to disclose all issues that could result in conflict of interests, among others. Investment advisers also have to disclose the fee received for their advice on a particular financial product. Does this mean we will get better advise? (ET)

Inflation notes have handed investors a 0.5 percent loss since the end of October, versus a 0.2 percent decline for the broader market, according to Bank of America Merrill Lynch indexes. The International Monetary Fund cut its 2013 growth outlook for the U.S. yesterday and the House of Representatives voted to temporarily suspend the nation’s borrowing limit. Treasury Inflation Protected Securities are lagging behind conventional U.S. government debt for a third month before the U.S. sells $15 billion of TIPS today. (Bloomberg)

Late Tuesday, the central bank allowed exporters to access the foreign exchange market without having to first exhaust funds in their foreign currency accounts, reversing a previous restriction imposed when the rupee was plummeting to life lows. The rupee swayed in two-way trade on Wednesday before settling higher, helped by gains in euro and foreign fund related selling. (ET)

Good luck!

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Preetam’s List

Market Roundup: Dow +0.46% to 13712. S&P +0.44% to 1493. Gold +0.09% to $1693. London -0.03%. Germany -0.68%. France -0.59%.

FIIs began playing an interesting derivatives strategy called ‘covered call and protective put’ last week. They initiated the strategy when Nifty futures traded around 6050-6070, hoping the index would rise to 6100 or slightly above that level till the RBI’s policy declaration on January 29. The markets have priced in a 25-basis points cut, but analysts say indices could correct by 5-7% if the central bank does not cut rates. (ET)

Faced with weak revenue and a rising budget deficit, the government hopes to raise as much as $5.5 billion selling equity in seven state companies before the end of March. It plans to offer a 10% stake in Oil India [stockquote]OIL[/stockquote]valued at about $600 million, 9.5% of power producer NTPC Ltd [stockquote]NTPC[/stockquote]. for about $2.3 billion, and 9.33% of MMTC Ltd.[stockquote]MMTC[/stockquote], India’s largest gold importer, for about $1 billion. (WSJ)

When the Jet Airways [stockquote]JETAIRWAYS[/stockquote] and ETIHAD are at the brink of a collaboration, Indian budget carrier IndiGo is in talks for an alliance with U.K. carrier British Airways. An operating alliance with an international carrier could give the carrier partial access to international destinations in Europe, without adding to its costs. . (WSJ)

Stock markets are supposed to reflect market sentiment. Typically, a buoyant stock market means there are strong proclivities towards growth. But the 2012 picture is quite different going by what has happened around the globe. Global conditions have been weak with uncertain future signals – fiscal cliff, the possible collapse of the Euro zone, stagnation in India and a downturn in China. Here is a take on why it happened? (ET)

Japan shares declined, with the Nikkei (NKY) headed for its first three-day decline since elections were called, as the yen climbed after the Bank of Japan said it will wait a year to add open-ended stimulus. In addition, Japan’s central bank yesterday agreed to set a 2 percent inflation target urged by Prime Minister Shinzo Abe. (Bloomberg)


All the best!

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Preetam’s List

Market Roundup: US markets were closed on Monday. Gold +0.03% to $1691. London+0.43%. Germany +0.61%. France +0.57%. Asian markets trading flat.

India on Monday raised the import duty on gold to 6% from 4%, stepping up efforts to curb the import of the yellow metal. Government also proposed to link gold exchange-traded funds or ETFs and the gold deposit schemes of banks to encourage investors to use existing gold stock in the domestic market. This step will help country to lower the current-account deficit. [stockquote]GOLDBEES[/stockquote] (MINT)

Housing Development Finance Corporation [stockquote]HDFC[/stockquote] may have missed analysts’ estimates, but a 16% year-on-year rise in its net profit in the quarter to December 2012 was backed by a spurt in loan growth, mostly from the retail segment, and its robust asset quality. Loan growth has been strong, with the individual loan book growing by 31% from a year ago, after adding the loans sold. (ET)

Spanish exports fell 0.6 percent in November from the same month the previous year, when they had risen 7.4 percent. Officials predict the euro-area’s fourth-biggest economy faces a further slump this year at a time when the government will struggle to meet its budget goals. It is expected that the toll on economic output may have kept as many as 6 million people out of work. Data expected on Thursday. (Bloomberg)

Total loans restructured by Indian banks under the so-called corporate debt restructuring (CDR) route crossed Rs.2 trillion in December. In the October-December quarter, banks restructured Rs.24,584 crore of loans, up from Rs.19,544 crore they recast in the previous quarter, to reach Rs.2.12 trillion. Many analysts suspect that 25-30% of the restructured loans may turn bad unless there is a significant revival in the economy. (MINT)

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