COVID-19: Is it the right time to invest?

The novel Corona Virus, or officially termed as COVID-19, is an unfortunate pandemic that is affecting lives and livelihood across the globe. During these testing times, we strongly recommend that everyone stay indoors and contain the spread of this deadly virus.

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While the entire globe, especially doctors, medical researchers, and those affected, fight this devastating disease, the markets have responded strongly. As anyone in the financial markets will tell you a moment in time is an eternity when the markets are moving. We’re obviously watching the markets roiled as updates come along. The markets world over have had steep falls similar to that we all witnessed during the 2008 global crises post the fall of Lehman Brothers. As opposed to the 2008 meltdown, which was predominantly due to credit negligence by financial institutions, the severity of the current market reaction is justified as businesses across the globe have just hit pause. There is a fear among the masses that have, in turn, led to a cessation in the movement of people; stores have no footfall, malls, restaurants, and cafes are shut, manufacturing and production in China and everywhere else has stopped. Businesses and hence the markets have gone south.

However, here’s the good news. While all markets across the globe have been down in hell the last couple of weeks, the Chinese stock market is trending in green. The reason behind this silent rise is due to the fact that the number of new COVID-19 cases in China is on a steady decline. China has now closed down the makeshift hospitals and has been successful in drastically reducing the spread of the disease.

With a focus in the financial and commodity markets, the keys to maintaining balance is to stay informed. Watching currency markets are as important as covering import and exports of commodities. There is no way to predict such a ‘black swan’ event, but we can compare prior markets as they make their way through these critical anomalies. As everything in this world is a new news event, everything follows a cycle that is familiar.

The rest of the world will follow suit. There is HOPE. As people and businesses spring back to life the markets will react positively as the world recovers from yet another slump. We know that this is the time to get greedy. We have seen the dot com bubble, have witnessed the 2008 meltdown and know for a fact that this a golden opportunity to invest. To invest in strong businesses and take advantage of this volatility. This short term slump is not just due to slowing business but also a strong negative sentiment and negative momentum. Good businesses are up for grabs at a lower price.

Although we understand that there may be further downturns in the market before it hits rock bottom, we would advise investing intermittently rather than a lump-sum investment. Yes, we believe that this is the right time to invest. When everyone else flees, we choose the right businesses to invest in and thus helping our client make the most out of their investments.

Hopefully, in a few months, we would be looking back at the Corona Virus pandemic and think about the losses in terms of life. While the markets shook, we would also marvel on how it stood resilient, even in tough times. We can never be sure of what impact it can have on the economy, fear is real, but it can be exaggerated compared to reality.

To conclude with Abraham Lincoln’s famous words: “This too shall pass!”

Interested in knowing more about how to plan your finances? We would love to have a word with you.

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Sheren Susairaj, Marketing Associate – 29k Investment Advisers Pvt. Ltd

2020 – What The Markets Have in Store

shutterstock_15040218892019 seemed to be a trying year for investors with the trade wars between the largest economic powers, continued uncertainty over Brexit and fear of general economic uncertainty. However looking back at the market performance in almost every sector – equity, bond markets, and currencies – 2019 was a good year for investors. The US equity markets alone posted an average gain of over 28% over the last year, a far cry from the dismal performance of 2018. These gains can be largely attributed to the policy shift by the central banks, especially the Federal Reserve. Furthermore, as the year drew to a close, the US and China finally seemed to have come to an agreement on their trade terms, providing the markets with some temporary stability. But, what are the markets expecting in the year ahead?

Most analysts and financial institutions are not expecting the same level of growth to continue in 2020. A survey of the largest financial institutions globally shows that while most agree that global recession will not be a concern in 2020, the growth in the markets may not continue at the same pace as it did in the previous year. The economic risk will continue to remain a concern for most along with the expected repercussions of the prolonged US-China trade war, as well as the general consensus that the Dollar will weaken. Analysts also expect monetary policy easing in the emerging markets to continue. In Europe, the focus is expected to remain on monetary policy easing by the ECB as well as economic data out of Europe’s largest economies.

What should investors do?

Over the coming year, most financial institutions are recommending that investors should focus on rebalancing their portfolios as riskier assets are more likely to perform well this year. Investors should look to make the most of opportunities instead of focusing on certain asset classes or regions. Equities, in general, are expected to out-perform other asset classes this year along with REITs and corporate bonds. The weakening Dollar would also provide an opportunity for Emerging Markets to recover and perform well. Emerging market currencies such as the Indian Rupee, Ruble and Mexican Peso are likely to yield positive returns.

Analysts and Investors will be looking forward to a few key points during the year. The US Presidential elections due to be held in November will drive market expectations on trade, taxation policies and even interest rates with mounting pressure on the Federal Reserve by the current President. Markets will also look forward to policy announcements by major central banks as markets expect a pause in rate changes by the Federal Reserve, at least for the first half of 2020. Finally, despite the end of year agreement between the US and China with phase one of the deal, the risk due to trade war remains. Trade disruptions between the US and Europe are also likely to continue, with the US expected to levy new tariffs on food, industrial product and luxury clothes on the European Union.

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Aishani Tawakley, CFA

29k Group

Emotions in a Stressed Economy – 3 Insights

“If investing is entertaining, if you’re having fun, you’re probably not making any money.

Good investing is boring.”

-George Soros

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The decline in global growth and recession worry investors; however, many success stories have come up by those who bravely invested in 2008 to create a fortune for themselves in the past decade. New and retail investors are losing confidence in the market after investing in the past couple of years. Here are 3 Insights into the market that one needs to look into to understand the global economy slow down.

Indian Market: The last two quarters were alarming for investors to see the decline in growth and earnings

Economists believe that the current slowdown in India is a combination of cyclical and structural issues and will take time to fade away. The Government at the moment is closely monitoring all NBFCs along with the RBI to weed out all weaknesses in this sector and monitor its growth.

Though FY19 welcomed the economic reforms, it failed to support several sectors. The sale of automobiles dropped; the most prominent sign was when the country’s largest car manufacturer – Maruti cut down 50% of its production and laid off over 3000 contractual employees. Tata Motors and Mahindra and Mahindra have also halted production and shut down plants for several days. In the FMCG sector, HUL has experienced a drop in its growth figures. Meanwhile, companies such as Patanjali have witnessed a decline in their dealerships; they have even reduced their marketing expenses to bring down their total overhead costs. The root cause of this could be the reduction of the purchasing power of the consumer in the rural market.

Global Growth Worry: US-China trade war leading markets to recession talks

US long-term bond yield has dropped below short-term yield, thereby indicating a depositphotos_49816769-stock-photo-stressed-girl-upset-with-badpossible recession soon. The trade war between the US and China and President Trump’s disagreement with the Fed has led to increased doubt over economic growth. This uncertainty has pushed investors towards safe-haven assets (Gold). Trump’s tweets have not helped the case either; the markets have swung, discounting the few positive news in the economy. Traders are confused and fail to understand the signal and direction of the market.

Hone Yourself with Market Trends

Emotions play a vital role in staying invested in the market cycle. The Sensex has been alive for 38 years, 28 of which have been positive growth years. Staying invested during the market cycle will fetch maximum yield in equity markets.

In recent times, India, being a land of entrepreneurs, has started generating more jobs, whereas big businesses and corporations are laying off employees to reduce the cost and production. This situation has opened new opportunities to invest in small and mid-cap funds, which are under-invested during the past 2-3 years. However, small scale businesses are still trying to recover from the effects of the credit crunch faced during Demonetisation.

Research houses suggest that the current slowdown is similar to what happened during the year 1998; several indicators draws a parallel between the two periods. Slow down can come from different areas of business and trade. Banks & regulators, today, are more alert as compared to 2008. All we should do now is to pick the correct stock and investment instrument which can produce maximum return once the economy gets back to a healthy condition. Right now is the time to put on the seat belts and not worry about things are beyond our control.

It is crucial to make sure to have an attitude to stay invested in the market to achieve your financial goals, rather than letting the emotions swing along with the market. Getting adequate knowledge from the right source is very important. Choose a financial advisor who understands the risk profile while keeping in mind the age and thus and advise you accordingly. Trust the advisor to provide the right attitude to stay in the stressed market.

Nobody can time the market, so, protect your portfolio through SIPs, diversification in US-based ETF, investing in structured products, and hedging your positions in trading. If you have chosen your portfolio to get high returns, you should also be able to bear the volatility. In case there is any aversion towards taking such risks; it is suggested that the portfolio might need a change from the highly leveraged instruments. This, however, should be done after making a little recovery instead of selling them at a substantial loss. Testing times like these remind us to keep nearly 60% of the net worth into liquid able assets (No Lock-in). Exiting the market at the wrong time is not the solution; seeking advice from a genuine Financial Advisor for the right approach to sustain through the rough seas of investing.

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Lavanya Kumardev

3 Steps on How to Invest in Your 20s

The 20s – An age where you are fresh out of college, all set to start a new journey with your first full-time jobs, internships, etc. Where you are driven and waiting to bask in the glory of learning something new.

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From a finance perspective, the 20s is also an age where there is a sudden shift in your purchasing power from pocket money/stipend to now your salary. You cannot wait for that wishlist on the shopping sites to become real purchases. The other side of the coin is your savings, equally important. Know your priorities and disciplining is irreplaceable here. Planting that seed in your mind to save and invest, is the very first step. Well, there is always a start but what next!

Here are three steps as to how you can invest in your 20s: 3 Steps on how to invest in your 20s

Check out our Youtube channel and Subscribe for more videos: 29k Group!

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

Money Management for Millennials!

#Millennial #financiallife #yo

Sounds familiar? The Millennial language it is!

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Millennials are confused about their money quite often. The #YOLO concept i.e. You Only Live Once clearly makes them spend more today and save less for the tomorrow. Irrespective of your profession, current situations, uncertainty on future goals, etc. MONEY MANAGEMENT is a MUST!

Credit cards, savings, budgeting, where to invest, etc so many questions already?

Millennials are the fuel to social media! Watch this while you are busy staring at your smartphone. Channelise the time to something more useful: 3 Rules on Money Management for Millennials!

Also, millennial lingo #likesharesubscribe

For more videos on money management, click here: 29k Group

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

3 Tips to discipline your child on Wealth and Success!

We all encourage music, sports, etc in early childhood, then why not the same attitude with investments? It is indeed a necessity and not just a choice today to inculcate these seeds of wealth and success. It need not be just quoting or reading from books which are way beyond your little one’s comprehension but rather explaining it to them in a simpler manner. Bedtime stories can be productive!

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Practice what you preach is even more relevant because remember your child is constantly watching what you do and learns best that way. So remember, teaching them what’s right requires you to learn it first!

Peppa Pig is undoubtedly every child’s (well, mostly) favourite but what about the ‘Piggy Bank.’ This has always been modified by the technology boom.

Watch this video for more: https://www.youtube.com/watch?v=wxaQMhW9Duc

For more videos on financial literacy, click on Financial Education and Awareness – YouTube.

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

6 Tips in 4 weeks to Attract Wealth and Success

“What you do speaks so loudly that I cannot hear what you say.” – Ralph Waldo Emerson

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You have read everything inspirational/motivational you can lay your hands on. But, all of this knowledge if not channelised into action is like fertile soil lying unused.

You need to have your road map simple, crisp and precise. And most importantly action upon the same. Your first course of action: WATCH OUR VIDEO: “6 Tips in 4 weeks to Attract Wealth and Success

No, this is not a magic potion or shortcuts, but definitely the catalyst you have been looking for.

Best of luck!

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

10 Point Checklist on How to choose a Financial Advisor!

Need financial peace?

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When it comes to a big purchase, we analyse the situation thoroughly. For example, if you need to buy a phone, you make sure it fits your needs, check on durability, features, you get the best deal possible, etc.

When you plan a vacation, you try to maximise your choices to get the best deal possible without compromising on quality.

What about the basis of all your expenses? The FOUNDATION of all of this is simple: MONEY.

Don’t you think you need an expert on the same to guide you? Choosing the right financial advisor makes a tremendous impact on your present and future finances. CHOOSE WISELY. BUT HOW?

Like Rumi rightly says, ‘what you seek is seeking you‘.

GO WATCH: http://bit.ly/2JK9LBL

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

3 Rules on Money and Success!

Financial literacy: One of the most unused, unheard terms which ironically needs the attention and limelight today.

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We all build our foundation in learning while at school, but how often are we taught about finances? We all have pre-conceived notions about money. Some say it’s the root of all evil, while some have a very pessimistic attitude towards the same. We work towards earning money, but how often are we told what it takes to accumulate wealth?

Even though there are experts to take care of it, it is important to break these barriers and understand the basics of finances. As cliché as it may sound, there are “rules on money and success indeed” and these are not the ones you would ever want to break. Don’t waste too much time wondering HOW? Watch the video: http://bit.ly/2HIwvyv

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.

Develop a Millionaire Mindset!

“The single most powerful asset we have is our mind. If trained well, it can create enormous wealth.” – Robert Kiyosaki

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Some of the most established multi-millionaires started somewhere small. With an idea, vision, mental framework most importantly an intent which they believed with conviction and faith so strong, well it can and has mountains indeed. It starts with a desire, an intent to yearn and strive for more, Financial fairytale sounds like an oxymoron. How can you be pragmatic and still wish for a fairy tale when it comes to money? That is the difference between a wish to be wealthy and desire backed by action to be wealthy.

Your thinking starts and is in the process now of looking at the bigger picture, but that has to culminate into the ‘doing’ now. Grammatically, it may sound incorrect, but the emotion is clear: Actions speak louder than words. Want to know how to seep this into your subconscious mind. Don’t wait for a Genie, watch this video instead: https://www.youtube.com/watch?v=HZ_LV40hpts


Written & Published by:

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Prashanth Prabhu, Founder & Principal Investment Adviser – 29k Group

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Shweta Gaba, Consultant – 29k Investment Advisers Pvt. Ltd.