Tweet Buster: Slippery rural theme, and how to add viability to your investment thesis


NEW DELHI: The bears had all the reasons to take full control of Dalal Street, yet the bulls managed to trick them once again during the week gone by, riding on the back of strong FII inflows and high liquidity in the market.

That confounded most Dalal Street veterans, who shared their thoughts and learnings on the micro-blogging site Twitter. Here are some snippets:

Independent market expert Sandip Sabharwal warned investors against the “rural” theme, saying investors need to be careful as the results can surprise you negatively.

Sabharwal also remains bullish on gold. With the yellow metal already trading at all-time high levels, he believes given the Covid-related uncertainty and geopolitical tensions, gold prices can rally further over the next 6-12 months.

iThought co-founder Shyam Sekhar says there is a simple test to find the “viability” of an investment theme. He says: Check whether they feel FRESH or are being FLOGGED.

Meanwhile, market veteran Shankar Sharma reminded investors of the importance of the ability to take risk. He says there is nothing without risk. “It’s only about what is “Acceptable Risk”. A good risk analyser is your best friend.”

BORDER TENSIONS

With China-related border tensions still hovering over India, it is likely that the market might turn its focus there should there be any fresh development.

PMS fund manager Basant Maheshwari believes the shape and the way modern wars are fought have changed drastically. He says nations protect themselves economically and not militarily. The only way India can wade through any pressure from China is by economic growth. Maheshwari says, “Have so much of American investments that any act of aggression endangers American assets. And Indian investors are not step children. They need to be equally nurtured.”

CLASSROOM
Sabharwal this week shared a thread of Twitter explaining the basics of GDP and what it would need for India to see a V-Shaped recovery.





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