A salute to our doctors, nurses, police forces and sanitation workers who are at the forefront of this battle. A salute also to the Indian state – we are always criticized by the West, but we show our best when our backs our against the wall. And we have done a far better job than the developed world so far.
I am writing to share a few thoughts
1. Be careful how you interpret the news you are reading
Read MoreIt has been a really tough month for all of us. Portfolios will be down about ~25-30% in a month. This is a speed of decline which I have never encountered as a Fund Manager.
Solidarity believes that following a disciplined process will result in good outcomes over the medium term, even if we get the occasional bad break that we are experiencing at present.
Read MoreMarkets have been on a continuous sell-off mode since then. A draw down of 20% from peak in a year is not an uncommon occurrence. However, we have all been surprised because we have not experienced it for a while. And, unlike other corrections, we have all been surprised at the speed of the decline as it has come in less than 3 weeks.
Read MoreThe Corona Virus has given the markets a scare with the benchmark indices ending ~7% lower last week. The large number of cases in Italy has understandably made participants nervous whether this is another normal correction or the start of something deeper and bigger.
I am writing to share with you our perspectives.
Read MoreWe see two roles for “Debt” in any portfolio
The starting point for Investors must always be Asset Allocation. In some earlier letters, we have written to you recommending you should hold some Gold/Gold Equivalents in one’s portfolio – as Insurance to guard against the “unknown unknowns” of excessive money printing and even as diversification into another Asset Class that is not correlated with Equities.
Read MoreOver the past few week, we have been asked by many partners whether “It is a good time give you more money?”
Read MoreThe money one does not want to risk Capital loss on is typically invested in Debt instruments. However, Debt Mutual funds have schemes that invest across varied risk spectrums.
Read MoreThe most common question Investment Managers get are “Is this a good time to enter equity markets?” and “where do you see the markets headed from here?”
Read MoreRead More“I can think. I can wait. I can fast”
Siddhartha, Herman Hesse