Memo

Financial & Mental Preparedness For What Lies Ahead

Posted by | Food for thought, Indian Markets, Memo | No Comments

The global economy has locked down and experiencing unprecedented uncertainty & volatility. Accordingly, it is ideal for everyone to ensure we are mentally and financially prepared to face what lies ahead over the next few months. Feel like exiting equity? Some of us could be thinking it feels like the end-of-the-world so better to cash out whatever is left. Pick up any book on the history of markets, read the experiences of veterans and invariably every crash feels the same, however, humankind has its own way of making a come back and we always do. Think about it this way, if things indeed go that bad, what purpose would this money serve anyways? However, if things get back to normal, we could witness the mother of all bull markets like the world saw …

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[Memo] A Note from CEO – View on Current Markets & Portfolio Strategy

Posted by | Investing Framework, Memo | No Comments

Following is a copy of memo shared with Stalwart’s clients during August 2017 – Markets were rallying one way up since the start of 2017 and many began to believe there’s really nothing that can stop this rally amidst so much liquidity and no alternate opportunity for deployment. Then happened the least expected regulation twist during the month of August which should have ideally effected just those 331 alleged “Shell” companies in whose stocks trading got suspended with immediate effect, but when it comes to markets the ‘cause and effect’ is complex and often goes beyond the obvious and even minor developments could spread into deadly contagion.   Some of our stocks too have corrected, however, these are merely mark-to-market changes as long as we have confidence in the underlying thesis. …

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[Memo] Penny-wise & pound-foolish – how brokers dupe investors?

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Following is a copy of recent memo shared with Stalwart’s clients – It is unfortunate that despite such strict regulations and risk management by SEBI and Exchanges, in a recent case a Delhi-based broker could pledge his clients’ securities worth Rs 55 Cr., borrow money, divert funds for trading/personal use and eventually default. The investors are now at risk of losing a part or all of their portfolio. A broker can do that because sometimes clients agree to transfer their securities to broker’s pool account, whereas in many cases it could also be done fraudulently without letting clients know about it. Why do investors allow the broker to transfer their DP holding to broker’s pool account? Brokers lure clients by offering interest on securities as high as 7-10% if they agree to …

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