Tag

Economy Archives - MULTI-ACT

Global-Macro-View-1

Global Macro View

By | Global Macro | No Comments

In this Article:

Listen in on a conversation between Multi-Act experts and their advisory clients. Find answers to questions such as:

  • What can we expect with fluctuating interest rates, particularly U.S. interest rates, which have a large impact of flow of funds globally?
  • Where is the U.S. dollar going as it appreciates against other currencies? How is the Rupee placed?
  • What is China’s impact on the global economy and how is it likely to all pan out?

Get expert insights into these questions and more in this transcript of a conference-call hosted on 19th February, 2016 with our Advisory Clients.

Read More

MA_Bankruptcy Code_Thumbnail_A

Showing The Door

By | India Macro | No Comments

A key factor when investing in quality stocks is the sustainability of a company’s competitive advantage. In their article, Entry and Exit Barriers, the authors Baijnath Ramraika and Prashant Trivedi suggest that while most investors look at entry barriers as a proxy for the ability of a business to persist with its supernormal returns, the presence or absence of exit barriers is a key factor as well and may at times serve to nullify the impact of entry barriers. Read More

MA_ThumbnailForBlog

Growth Vs Value Cycle

By | Global Equity | No Comments

Investment decisions need to be based on rational analysis and void of behavioral bias. However, markets often act without clinical analysis and prefer different type of assets in different phases. One such example is emerging across the growth stocks and value stocks, where the favor or disfavor for a particular class changes over the course of a market cycle. Read More

GDP Growth rate and Equity returns

The GDP Growth Rate Myth

By | Global Macro | No Comments

This article originally appeared on Advisor Perspectives.

An article published in a renowned daily suggested that equity market returns follow nominal GDP growth rates. The author appropriated, “The reason for this is simple. Equities over time grow in line with the growth of underlying businesses. As businesses comprise the economy, the nominal growth of the economy (real growth plus inflation) is a good proxy for the average growth in businesses. The Indian economy has grown at a remarkably constant nominal growth of 15% p.a. No wonder that the Sensex CAGR of 17.1% is close to 15% nominal GDP growth.” (Emphasis mine) Read More

Indian FMCG Market Analysis

Indian Market Analysis: Consumption Vs. Extraction

By | India Equity, India Macro | No Comments

We do understand that Investing being game of odds, market participants would prefer to pay a premium for ‘certainty’ in earnings, growth etc. But the same question also then logically extends to expensive valuations. One has to be mindful of the fact that as much as the behavioral biases of the market might lead us to think otherwise, prospective returns essentially are a function of arithmetic calculations and not any story built around an investing idea/theme. Read More

US bull market analysis

Are We in a Bull Market? Danger, Will Robinson, Danger!

By | Global Equity | No Comments

This article originally appeared on Advisor Perspectives.

The low-yield environment manufactured by central banks has encouraged and precipitated yield-seeking speculation. Investors and speculators alike have taken up a near-religious conviction in the demi-god status of central bankers. Will these central bankers continue to enjoy their god like status indefinitely or will they disappoint their followers? Read More

Valuation of US equities

U.S. Equities: Overvalued or Undervalued?

By | Global Equity | No Comments

This article originally appeared on Advisor Perspectives.

“Be fearful when others are greedy, and greedy when others are fearful.” -Warren Buffett

“…. valuing the market has nothing to do with where it’s going to go next week or next month or next year, a line of thought we never get into. The fact is that markets behave in ways, sometimes for a very long stretch, that are not linked to value. Sooner or later, though, value counts.” Warren Buffett Read More