Pump Up Your Portfolio

Pump Up Your Portfolio

The current state of equity markets is a good example about why they get perceived as complex and perplexing. The daily wild fluctuations consisting of sharp up moves on one day followed by sharp drops on the other makes the science around it exceedingly difficult to ascertain. However, the current volatility and fearfulness is promising to be an excellent opportunity, once again. Just the way we advised you all to build up your portfolio over 8-12 weeks last year starting from the month of April 2020, we would like to repeat a similar piece of advice now. The next 4-8 weeks should be taken as a good time to deploy funds into a portfolio from a long-term perspective. The weakness the market is facing owing to the second wave and lockdown measures is an opportunity in disguise.

The US market is considered to be one of the most efficient markets in the world. When any market is efficient there should be a low probability or rare occurrence of securities fraud or a scam in that market. Ironically, it is just when investors were rejoicing a ‘V-shaped’ recovery in US economy that a scam was unearthed in the form of Archegos Capital Management. Such scams never go away and no matter what the regulator does or attempts to do, stock market scams do rear up their ugly head now and then. To precisely cover this topic in detail we thought it would be interesting to peruse through a variety of stock market scams which have impacted several investors’ lives.

In our cover story that highlights ‘scams and markets’ we have also focused on how various scams have helped boost market strength over the years. Don’t forget to be entertained by the special interview of popular Hindi film actor Abhishek Bachchan, who has played the lead role in ‘The Big Bull’ with its story related to a stock market scam, that we are carrying with the cover story. Hope you like reading our perspective on various scams. Further, the current issue has a special feature on the infrastructure sector. You cannot miss on the infrastructure theme in CY21. Last time we talked about the commodity theme and look at what is happening with metal and other commodity stocks prices.

As of now, the infrastructure theme is trending, and the trend may continue. However, one must be extremely selective, and we have given guidance on that too in the special story. In our other special story, we have attempted to give a realistic picture of the banking sector. Investors have an affinity for banks. The business of banking is easy to understand and visualize and a majority of investors are customers of some bank or the other. There is a comfort level while buying a tangible banking stock. Our special story highlights the difficulties faced by the banks in the current market conditions and provides a fair assessment of investing opportunity in the sector.

While rising corona virus cases and lockdowns in select regions in India may be making headlines everywhere, please remember that earnings’ re-rating and upgrades are happening on the ground for a large pool of companies. The next 4-8 weeks are going to be important and hence I urge you to stay tuned, explore all the possible stock ideas and, most importantly, pluck the best and most profitable investment opportunities which we share in our magazine using a refined investment process and philosophy. Happy investing!

RAJESH V PADODE
Managing Director & Editor

 

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DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

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