Showing posts from March, 2020

A Few Thoughts on Market 'Correction' during COVID-19 as we move into FY 2021

It has been a max drawdown of approximately 40% from the peak in January 2020 to the last few days of March 2020. The speed has been the fastest they say since 1929 for such a decline in the global markets. It took the Nifty 50 to go down 40% in 45 trading days. To put things into context the Nifty 50 fell 65% in 10 months in 2008. The speed this time has been brutal. So be it. I can't control how the market moves but I can control what percentage of equity I hold and what is allocated to cash & safe debt. I can control what decisions I take to invest. Do I have to get swayed to put money into businesses which are mediocre or worst because some seasoned investor put in during bullish times? No. I have to stick by my rules. My rules are very simple. At a high level the following: My core stocks must be businesses which if I forgot my demat survives 20-30-more years. Survival is the key in this core holding. I also like to have heavy bets on businesses which are doing well

Is it mayhem?

Background I boarded a flight on the night of 16th January 2020 from Singapore to Sydney. It had been close to a month I had stayed away from my little daughter & lovely wife. The excitement inside was too difficult to contain. Within a couple of days into my holiday the news came from Wuhan that a certain Novel Coronavirus has struck from a wet market in Wuhan in the Hubei province of China. Number of people infected were rising exponentially. The faster growth was in the number of reddit members following that thread. We enter February and the world has taken cognisance of this new virus. The disease gets a name Covid-19. Myself and my daughter both catch a fever. Flu? I am scared. I recover almost in a few days. Due to my daughter I postpone the return to Singapore. By that time Singapore becomes a global hotspot. The government which is perhaps the most efficient in the world comes into action. I return to Singapore leaving my child and wife behind in the suburbs of Sy