Investment Faqs with Parimal Ade (Investment Satsang-22)4 min read
Here are some questions asked by the viewers in the Investment Satsang dated 24th September 2021. These questions can provide you with 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.
• First thing is to know is what is the company working into.
• If the business is understood then there should not be a problem.
• Technical Analysis is only suitable for the individual eyeing to become a full-time trader.
• This is the best thing that is been done.
• The cash has limited upside. It is very difficult to hide the cash after a certain percentage.
• Paying taxes and creating white income has immense growth potential.
• Tata Elxsi is having a very long-term journey.
• These are small stocks compared to the potential they have.
• This is the sector that is going to grow like anything.
• These are the companies who are behind the innovations.
• There could be chances that automobile companies will not do that well as compared to these companies. These companies are going to be game-changers.
• The stock should be sold when the earning visibility and growth visibility are not good then there should be an exit from that stock.
• Until and unless you don’t believe in that business one should not invest.
• People should do behavior management.
• It is difficult when you will become a trader from an investor.
• Need to follow the financial planning process. Need to do the investment as per the financial goals.
• The people who have taken exit and want to reinvest for them can reinvest, and if there is a good amount of saving. Then that saving should be invested by doing the SIP.
• It was always said that the market allows exiting 3 years before the financial goals.
• There is a mood for institutional investors
• This has taken the PE levels of chemical companies upside that is been seen at the current levels.
• The special chemical sectors need to follow the quantitative analysis.
• Not able to analyze these companies for more than 5 years.
• Don’t know what the government is going to take in terms of environmental policies.
• Currently, there is a lot of momentum and interest in this sector
• There are unprecedented inflows.
• If interest rates are growing, this thing will happen when QE tapering will happen.
• This will happen when the federal reservers inflow will get reduced and then stopped, then there are high chances of federal reserves to start withdrawing the money.
• This will happen when the federal reserve feels that the US economy is a strong state and can see a comfortable inflation range.
• At that time they will start increasing the interest rates.
• We have seen in 2003 to 2008 the federal reserve was increasing the interest rate still the markets were doing well, because of the global growth in the economy.
• The aggressive rate hike will happen when they are comfortable with this growth rate.
• Currently, the federal reserve percent is around 0% to 0.25% but still, 10-year G-Sec is trading in between 1.3% to 1.4%.
• Markets have already factored in the interest rate because the G-Sec yield has also gone down 0.33%
• This is because of digitalization which was going to happen but the pace of digitalization has increased in the last 1 to 1.5 yrs.
• That’s why most of the sector’s long-term returns have been preponed and have been rerated.
• Once they normalize the guidances the It sector will be also normalized.
• Then there are chances of sluggishness. This doesn’t mean you should exit from the IT sector.
• Need to stay invested which are comfortable from a valuation point of view.
• It is an interesting company.
• It is doing good in the emerging sector.
• It is having a typical tech thought process.
• It is interesting if this field is understood properly.
• These companies are not typical balance sheet companies but these are P&L companies.
• Their expenses come in P&L that’s why we see bigger losses. They can turn positive anytime they want to.
• Initially, they are acquiring assets which means how they engage their subscribers