- Wealth PMS (50L+)
Last week was all about rumors of Russia going to war with Ukraine. Which didn’t happen. Thankfully so. But it was enough to spook the markets and scare the investors.
As long-term investors, the question to ask ourselves is if we are strong enough to wade these short-term rough times? Some food for thought around this question in the topics we cover today.
The much-awaited IPO is here. LIC has filed its DRHP and looking to raise ~70,000 Cr from Indian markets. LIC doesn’t need money, but the Government does. They are currently looking to offload 5% of its stake, making it the biggest IPO in India.
LIC is Big!
What are the growth triggers?
What are the risks?
Should you subscribe?
The retail quota is higher at 35% (unlike the regular 15%) for this massive 70K Cr IPO. The chances are very high for allotment. We suggest you skip the IPO and let the price discovery happen by the market.
If you are looking to invest for the long term, you have an ample amount of time (not quarters, but years) to build a position in this company.
The markets were volatile over the week amid tensions of a war breaking out between Russia & Ukraine. While the conflict has historical reasons involving the annexation of Crimea in 2014 – there’s one more interesting angle. The US is concerned that the power structures in Europe may tip out of its favor and hence seems to be actively promoting this conflict.
While the real reasons behind such global developments are never known, it’s good to consider all perspectives.
It has been a rocky year so far, in 2022, with worries about inflation competing with hopes about recovery for the market’s attention. In the midst of all the action, to no one’s surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple, and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports.
Aswath Damodaran writes a data-loaded article analyzing the FANGAM stocks.
Money is a new hobby. Prime advertisement slots of all gaming events are filled with advertisements of crypto exchanges, fantasy leagues, equity platforms, and the likes. Money has caught the fancy of the youth like never before. Options trading, flipping NFTs, HODLing cryptocurrencies, and BTFDs are the “in things” among the youth in their 20s and 30s.
Data drives the point in this post. The author looks at the best-performing stocks in S&P 500 in the last 30 years and draws out one rare investing insight – the ability to withstand long periods of drawdowns.
All of the top 30 stocks over the past 30 years have had the same gut-wrenching declines at one point or another, proving that large drawdowns are an inevitable part of achieving high returns.
As an investor in equities, what scares you the most?
Last week’s poll results
Most of you would invest in Equities and would prefer technology stocks. Convincingly so.
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