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Macro

Two Ways to Build and Preserve Wealth – AAII Investor Update

By | What We Are Reading | No Comments

In this article:

Given a choice of two stocks which one would you choose? A trusted source says choose Stock A but you’re really not sure since both stocks are expected to rise in price; both charts show similar formations, and recent buzz on both stocks is all positive. Which one? How do you choose? Go with your gut or look at some additional factors?

Charles Rotblut, CFA and Editor of American Association of Individual Investors (AAII) shares some resourceful tips for exactly such a time. This article offers a practical guide to bettering your odds regardless of whether you’re a value investor, a growth investor, a momentum investor or a chartist.

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why HNIs must invest in gold

5 Reasons Why HNIs Should Invest in Gold

By | Gold, Investment Insights | No Comments

Ultra High Net worth Individuals (UNHIs) and High Net worth Individuals (HNIs) know that successful investing entails diversifying their assets and building portfolios that can handle any form of turmoil in the markets. The secret to this is to build portfolios with assets that are contrary to each other to a certain extent.  Prashant Trivedi, Chairman of Multi-Act Trade & Investments Ltd. states “Essentially the way in which the portfolio is constructed is, you give one-fourth to different asset classes – one-fourth to cash (and/or gold), one-fourth to fixed income, one-fourth goes into equity and one-fourth is given to real estate”.

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Best Investment Quotes by Famous Investors

7 of the most Inspirational Investment Quotes

By | Investment Insights | No Comments

There are gurus and there are finance gurus. Most people approach the markets like a maze or a puzzle expecting to be confused and overwhelmed losing their way in the many alleyways and avenues in the investing world. There are some who are more enlightened when it comes to navigating finance with fresh approaches and successful strategies that serve as guides for others. We’ve put together what we consider to be some of the best investment quotes from these experts! Read More

Calm investor making investment decisions

Staying Calm and Keeping Behavioral Biases Aside while Investing

By | Behavioral Finance, Investment Insights | No Comments

“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.”

 – Seth Klarman.

When Warren Buffett famously stated that investing was simple but not easy, he meant that the rules we ought to use in order to make good investment decisions are easy to learn but actually adhering to them is difficult. Disregarding rules while investing cannot be attributed to open rebellion but can be ascribed to the basic human survival instincts that have been ingrained in us since time immemorial. Certain traits favored in the process of Natural Selection and helped our ancestors survive in the jungle actually do not help in the market.
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Bob Rodriguez – We are Witnessing the Development of a “Perfect Storm”

By | What We Are Reading | No Comments

In this article:

Robert L. Rodriguez, former managing partner at FPA, a Los Angeles-based asset manager who retired after more than 33 years of service, shares his take on:

  • Reversion to the mean
  • Factors driving the flow of mutual fund assets to passive strategies
  • Under-performance of active managers and the potential bubble
  • Destabilizing influences of ETFs and index funds that are brewing the perfect storm
  • Concerns about “smart-beta” products for investors who want a value-oriented portfolio
  • How he is investing his personal assets

Rodriguez’ insights are what every investor should read.

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The Reasonable Formation of Unreasonable Things

By | What We Are Reading | No Comments

In this article:

It is the most devastating trick investors play on themselves. Realizing that the rise and fall of bubbles does not negate the effectiveness of diversified long-term investing is one of the most powerful understandings an investor can have. And one of the hardest things an investor can do is maintain conviction on a long-term strategy when there’s a changing of the guard between one game and the next.

But a lot of the emotions — excitement, greed, fear, and frustration — stem from not knowing what bubbles are or why they’re happening which is what Minsky’s financial instability hypothesis explores.

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Auto Loan Warning by Fitch

By | What We Are Reading | No Comments

In this article:

With slightly higher yields, subprime auto-loan backed securities were grabbed by institutional investors that manage other people’s money.

Now, almost all indicators of auto lending are flashing red. Negative equity has hit an all-time record. Why is negative equity such a growing phenomenon? Because of the toxic trifecta in the auto industry, now happening. Read on to delve deeper into the insanity of the United States’ auto lending segment.

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why invest in gold

Why Indian Families Must Invest in Gold and Gold Mining Shares

By | Gold, India Equity | No Comments

Gold has been in use as a form of currency or a high value commodity for at least three millennia. Records show that India has had an intense relationship with this glittering metal for almost as long. The picture of an Indian bride is incomplete without her being weighted down by masses of gold jewellery and tales of palaces being inlaid with gold leaf abound.

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Why care about China’s Shadow Banking Crisis?

By | What We Are Reading | No Comments

In this article:

Credit growth is a well-known factor behind bubbles and China’s credit growth in the recent past should be a definite concern. Shadow banking channels (which make traditional reporting obscure) is a further negative. History shows, in many cases, how it ends in the scenario of tightening or loss of confidence among participants walking a tightrope of duration mismatch.

Read on for more insight on shadow banking risks in China.

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Bad News Investor – Buying “Bad” Stocks

By | What We Are Reading | No Comments

In this article:

Bad news investor is a person who invests primarily in stocks of companies that are in news due to bad reasons. But does it make sense? Theoretically it does. You need to be sure as to why your reason for investing in so-called bad stocks is sounder than the reasons of those who are selling.

Cyclical businesses are known to witness regular flows of good and bad news depending on the cycle of their businesses and effects of bad news can be temporary. So what should you do if you hear some bad news about the company whose stock you always wanted to buy? Learn how bad news can actually be good for you here and how to choose what stocks to buy.

Read the original article here

Bad News Investor – Investing on Bad News

 

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