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Thursday, April 27, 2017

What Stocks to Buy when the Market is at its Peak?

Tag showing text "Peak Markets"

Dear Friend!

Your question is a very good one, as today the Indian markets are at their record highs. The Sensex is above 30000 and the NIFTY is above 9300. An investor naturally wonders what stocks to buy in India at these levels. Fortunately the key to this riddle lies in the nature of the market itself. The stock market is an imperfect and irrational one. Because of this imperfect market behaviour, a value investor mostly is able to find good opportunities to invest in wonderful stocks at reasonable prices.

Let us see the good stocks that are still available at attractive valuations even when Indian markets are at record highs:
Table showing good stocks at reasonable valuations

The dividend yields of SJVN, NLC and GE Ship are slightly below the minimum dividend yield expectation but their Price to Book Value Ratios and Price to Earnings Ratios are in the attractive zone.

In conclusion, in the imperfect stock markets an investor usually is in a position to buy good stocks even when the markets are at their peaks.

Thank you,

Best Regards,


Anand

How Finance Companies Offer Loans at Zero Interest?

Label/ Tag showing, "No Free meals"

Dear Friend!

A very valuable question - indeed.

As the proverb goes, there are no free meals in this world!

Especially in the finance world!

So, how does the finance company survive?

Well, the product/ car dealer passes on a part of the margin received from the product/ car manufacturer to the finance company.

Scissors cutting margin and meal plate

This small margin sacrifice by the car dealer has created a win-win situation for both - both the car dealer as well as the finance company could conclude one business transaction, adding a bit to both the top and bottom lines.

Thank you,

With Best Regards,

Anand