Inflation is like a ‘wolf in a dog’s skin’. You need inflation to boost your consumption demand and output, but it’s also a silent killer of your wealth. India, like all many other economies, is now wrestling with this complex impasse. Meanwhile, on Dalal Street, investors are confused whether to buy every dip in this ‘hated’ bull market or wait for the post-Covid era to arrive. Read this and more in this weekend’s ‘Long & Short of Markets’.
Value bet or trap?
ITC is available at a steep discount to its other large FMCG peers. Can this be a value bet for the long term or a trap investors must avoid? Here’s more on the uncertain outlook for ITC, one of the most talked about stocks on Twitter.
Trading vs investing
Rakesh Jhunjhunwala has a piece of advice for the newcomers in the stock market: Don’t trade, the math is against you. Read more about what the ‘Big Bull’ has to say about chart reading, algo-trading and managing losses.
If you are looking to stay in the market for 3-4 years for returns, you need marathoners, not sprinters. The dark horses of the future are presently the pariahs of the Street. Here is more on how to build an all-weather portfolio for next 3-5 years.
RBI’s bond with bonds
If you were yearning for higher returns on your bonds and debt funds, this is the time. RBI’s masterstroke ‘one solution for many problems’ worked wonders as the central bank softened the yield to below 5.9 per cent to become Asia’s best performer. Read here for more on how the RBI’s liquidity measures and bond purchase actions are impacting the debt market.
With India’s industrial output picking up only at snail’s pace, inflation has accelerated over 7 per cent. That creates a huge growth-inflation puzzle for the money policy managers in the country. Here is more on the conundrum that rising inflation and dull industrial output have foisted on the Indian economy.