Investment Faqs with Parimal Ade (Investment Satsang-20)
2 min readHere are some questions asked by the viewers in the Investment Satsang dated 10th September 2021. These questions can provide you insights on some grounds. Please read these questions for knowledge purposes only and make any investment decisions only based on your research or the advice of your financial advisor.
Parimal Ade:
• All the global markets apart from China (Shanghai Market) are trading at an all-time high.
• The reason behind it is there is no alternative to Equity Investments.
• The low-interest money that has floated in the market has not just helped the economy, but it has also addressed the speculated assets and has taken up unprecedented moves.
• Till the time this liquidity is where the markets will be at an all-time high and there is no alternative for equity investing. Debt class PE ratio is uncomparable till that time this journey will continue the same.
Parimal Ade:
• For the same reason (Covid-19, the market will not correct again.
• If there is QE tapering then there are chances of marketing getting corrected.
• The QE tapering will happen at a slow pace.
• The Federal Reserve has purchased bonds worth $120 billion, and that’s how liquidity has been created in the market.
• Due to 3rd wave of COVID fear is created due to the rise in COVID cases in the US. By which the unemployment numbers are looking bad. So they are worried about these numbers.
• When there is a fear of liquidity crunch then it will directly affect the spending. That will directly impact the economy.
• With the equity market returns that have been given all over the world, there could be chances of consolidation.
Parimal Ade:
• Accumulation Point of view both are good.
• In the case of Pidilite, the focus is more on growth. They are experts on adding new categories and getting a monopoly and getting market share. That’s the reason why the market is trading at a premium valuation.
• The best way to allocate the fund is in a staggered way.
• Infosys will not surprise you in the coming days/period. Lower double-digit returns are expected from Infosys and other IT Companies.
Parimal Ade:
• The Overall patents get matured. Then the drug becomes a generic drug. This brings the profits down.
• This is how the R&D companies work. If they get the patent in the R&D then they go crazy on the profits. Till that time the sluggishness is going on.
• The sluggishness could be there for the long term till the time they come up with a new drug.
• The investor should believe in their product and R&D then only he/she should be investing.
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