A new decade with more opportunities for growth, personally and professionally, began in 2020. Several investment trends are emerging that are going to alter how the world operates. The next ten years are going to be full of new developments and technologies that will transform this planet into a whole new one, from the arrival of flying automobiles to AI taking over everything and everyone.

Advanced sensors

Global imaging satellites, drones, AR headsets, and LIDARs will provide people with instant access to information on everything happening in and outside of space. Through the Internet of Things, about 100 billion sensors will be able to monitor and detect every aspect of our surroundings at all times by the end of this decade.

AI/Human-like intelligence

As people look to invest in technologies that will enable seamless integration of our daily lives, AI is undoubtedly one of the other core investment trends. More like AR and VR, artificial intelligence is engulfing all relevant industries one by one. It has now reached parity with human intelligence and is gradually becoming capable of everything that humans can do.

Gene therapies

From AIDS to Ebola, gene treatments and CRISPR are reducing diseases, and this is becoming an appealing sector for investors, whether they are funding or trading stocks.

As the board considers a buyback, Paytm shares increase in Dalal Street.

Paytm stock is down 60% in 2022 following a much-watched debut in the latter part of last year because of concerns about profitability and expenses associated with marketing and employee stock options.

When stock is repurchased, shareholders receive the market value of their shares plus a premium from the corporation, which is a benefit to all shareholders. Additionally, stockholders who sell their shares on the open market will profit directly if the stock price increases prior to the buyback.

An effective stock buyback can maintain stock prices, streamline ownership, and replace dividends, all of which are advantages for companies. Although a repurchase doesn't always benefit investors, it can since investors get their capital back.

Share repurchase plans have always had benefits and drawbacks. The real worth of stock buybacks has been questioned recently, though, since their frequency has increased. According to some corporate finance specialists, firms take advantage of them to artificially boost certain financial figures, such as EPS, in the name of benefiting shareholders.

Christmas is all about spending spree, who even cares about saving? Well, right you are. But we are talking about investing to let you have an even better Christmas in 5 years.

Without adding a heavy hit to your funds, let’s guide you with some very simple and incredible investment plans for which you don't need a fortune in your account. These will bear enough fruits for you, only if you are ready to hold them in your repository for a while.

1. Unit Linked Investment Plans – the money that you invest will be channelized into stock markets. It gives you life coverage and financial security plus lets you enter direct market investments. Hence, one of the best investment plans.

2. Direct equity – You get high returns in long term compared to other plans that are inflation adjusted.

3. Debt Mutual funds – Be a gainer with commercial paper, treasury bills, govt. securities and money market tools as fixed interest.

4. National pension scheme – Doesn’t matter when you plan to retire, keep some money into this account to help you in your superannuation days.

The RBI increased interest rates by 35 bps today, the fifth time in a row.

"Will rise even more!" fund managers have been forewarned by S&P Global Ratings. There will be a big increase in borrowing costs worldwide in November. The central regulators of the top 6 traded currencies are imposing a significant 350 bps increase. In November, interest rates were raised by the US Federal Reserve, the BoE, the Australian Reserve Bank, and the Norway Bank.

The central banks of Sweden and New Zealand support the same tendency to control inflation, in addition to the other four banks.Irony is only Japan welcome inflation for growth!

Asia is under pressure, as evidenced by the past month's rate increases in South Korea, Malaysia, and Indonesia. In the previous month, rate-setting sessions were skipped by the ECB, the Bank of Canada, Japan, and the Swiss.

The rate adjustments force the G10 central banks to raise interest rates by 2400 basis points. However, there is a weak indication that the Russia-Ukraine conflict should be avoided, giving the world economy some optimism. The US is becoming more optimistic about a slight decline in inflation, which could change the Federal decision made in 2013 and 2014.

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PAT or profit after tax does not always ensure a bullish run of stock performance

1) Debt dive

If a firm meets profits expectations, but analysts and investors see that the company has taken on a lot of debt during its last quarter, to the point where it might be regarded as risky for the company, this would undoubtedly lead the stock price to decline dramatically on market opening.

2) Stock buyback

A stock price decline following an earnings surprise may also be brought on by the corporation repurchasing outstanding shares. The stock price of the company normally rises when it repurchases its own shares, and the financial statements also get better.

3) Liquidity adjustment

Large hedge funds try to enter and leave equities when there is greater liquidity, or in other words when a specific stock is seeing significant volumes of trade. They do this because they hold a substantial percentage of the company's stock and do not want to affect a stock's movement at times when trading volume is low.

After an earnings beat, a stock's price may decline due to news that not many investors are following.

Although a stock price increase following a beat in earnings is common, this shouldn't be assumed always to occur. Even after exceeding analyst expectations for both sales and earnings per share (EPS), a stock's price frequently declines.

5 reasons for stock's low performance despite good quarters

1) Panic selling trend

 Investors may buy heavily before the earnings report is revealed when, for whatever reason. Now, even if the earnings exceeded expectations by a wide margin and met investors' expectations, the stock price could still decrease afterward. This could be due to the stock price being at an all-time high or 52-week high, or it could be due to investors' lack of expectation that it will rise further in the near future.

 In essence, this could result in a flood of selling and lower stock price.

2) Change in Board of Directors/Management

A senior executive, such as the CFO or MD, might be departing the company soon, the company might reveal on an earnings call. Despite beating expectations for earnings, this could lead to a decline in the stock price.

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We will discuss 3 points in next post 

Landed up in first job? Well, that can be at any age; trust me, you can bag your first salary at any point in life. It can be in 20s, 30s or even 40s, totally depend on what has been keeping you busy till now.

But what’s that one thing you need to jump in right while getting the first paycheck? Investment it is. Start slow and then gradually build up.

1. Get a life insurance of an affordable premium – Even if you don’t want to consider it as a security for dependents, get it done as an investment to enjoy amazing returns upon maturity.

2. A health insurance – Even though you might be covered by your company, buy a personal one. It helps!

3. Fitness regimen – Yeah, it’s vital especially if you have hit a deskbound job. Save some amount every month for your fitness plan.

4. Fixed deposit – Even if interest rate might be low, yet it’s a safe plan as you will not withdraw it until maturity.

5. Public Provident Fund – A great investment it is; plan to invest a certain amount every year to keep your money in safe haven, while enjoying good cumulative returns.

If investing in fundamentally sound equities is your investment objective, confirm that the company has a large promoter holding. It makes sense, really. A company is more likely to succeed in the future if its promoters believe that its stocks are valuable to purchase.

Narbada Gems and Jewellery has a 74.99% promoter holding. The stocks surged 100% in one year, where the 5-year return is 215%.

Mazagon Dock Shipbuilders Ltd enlisted 84.83%, the stock jumped roughly 200% in one year, and it o served a 386% rise in 5 years. The price was merely ₹168 in October 2022 and now ₹816.

RSD Finance's 74.9% is under promoter's holding. The company rocketed 21% in one year and 72% in 5 years.

Promoters acquire 74% of Gujarat Mineral Development Corp stocks. GMDC is an eye-popping growth of 114% in one year, to ₹140.

Bharat Dynamics, with 74.9% of promoters holding, has a bumpy ride of 138% in one year and 137% in 5 years.

However, exception is there; companies like ICICI Bank, which have no promoter ownership but are very effectively operated and have increased shareholder wealth, fall under this category.

The fact that the retirement age is rapidly lowering owing to technological advancement and that life expectancy is increasing due to medical advancement is something that Gen Y or Z and even millennials don't think about enough.

In 25 years, the retirement crisis will likely be the largest issue for most nations, assuming that climate change doesn't end all of life as we know it. A retirement fund was built by earlier generations by real estate, FD, and bond markets. Future events are unlikely.

So,

Commence early savings. Switch between FDs, G-Secs, and SIPs of index funds and ETFs.

Purchase a complete health insurance plan for you and your entire family. Most Indians can become financially ruinous after just one health bill. Because jobs don't endure forever, one policy is in addition to what is offered at work. Don't rely on company-funded mediclaims blindly.

Purchase a sufficient term insurance policy. In the worst-case scenario, this money in a bank FD should be sufficient to meet their needs. But for most people, the biggest fix is to cease taking out loans.

As per Financial Times, the US is heading towards recesstion after this Christmas!

Wall Street index bodies maintain a downward trend, followed by EU and UK indicators.

Understanding the recent developments in the Indian Capital Market—

As the Central bank is grappling with mounting inflation and hiking rates several times in FY23, following the same footsteps, commercial banks start to discourage savings in banks with the lower trend of interest rates.

The lending giants of India, like SBI, ICICI and HDFC, offer an FD account of 4.5% for 91 days, and the rate is 5.25% for 182 days.

But in the case of Treasury bills, they offer 6.4% for 91 days, 6.80% for 182 days and 6.9% for 364 days. A steep rise of T-bills from FDs. However, investors are also looking for debt funds, Real-estate investments and Govt bonds.

Traders can buy T bills from trading accounts or exchange bodies without CSGL bodies. 

Many investors will wish to transfer more funds into cash if a lengthy, severe recession does in fact, extend through 2023 and beyond.

T-bills with a shorter maturity date, however, currently have even greater rates and more flexibility. Of course, yields will only increase for a long-time investment.