More and more, investment strategies have to focus on the macro aspects like sector performance, asset class performance, etc.
The old mantra of "be invested in all asset classes and it will average out over time" may no longer apply.
When Benjamin Graham wrote "The Intelligent Investor", he emphasized on individual stock selection and margin of safety. With the democratisation of information, AI analytics and the surfeit of analysts, it is not easy to find the proverbial "cigarette butts".
Then Buffett came up with "find good companies at a reasonable price" formula. Buffett, Peter Lynch with his Fidelity Magellan Fund, and the likes of Jhunjhunwala and Sadashiv Mankekar could do it. It is still possible to do this, but not everyone can be like these greats. It is also increasingly difficult to "discover" hidden gems, for the same reasons as stated above.
The market is increasingly driven by instritutional and cross border money flows. They all tend to move in a herd, and there is always a lag between a trend becoming obvious and it catching on. Can you as a retail investor spot the trend, and move before the herd does?
For example, the place to be for the immediate foreseeable future is gold and silver, gold and silver mining stocks, commodities and within commodities copper and Uranium, and commodity stocks.
I am in the process of shifting my investments to these. Whether I am right or wrong only time will tell, but there is no option but to have a view and act on it.
Ultra defensive plays like shifting predominantly to debt at 7 to 8 percent taxable is also likely to be disastrous with high inflation on the cards across the world.
We are living in very interesting times.
The old mantra of "be invested in all asset classes and it will average out over time" may no longer apply.
When Benjamin Graham wrote "The Intelligent Investor", he emphasized on individual stock selection and margin of safety. With the democratisation of information, AI analytics and the surfeit of analysts, it is not easy to find the proverbial "cigarette butts".
Then Buffett came up with "find good companies at a reasonable price" formula. Buffett, Peter Lynch with his Fidelity Magellan Fund, and the likes of Jhunjhunwala and Sadashiv Mankekar could do it. It is still possible to do this, but not everyone can be like these greats. It is also increasingly difficult to "discover" hidden gems, for the same reasons as stated above.
The market is increasingly driven by instritutional and cross border money flows. They all tend to move in a herd, and there is always a lag between a trend becoming obvious and it catching on. Can you as a retail investor spot the trend, and move before the herd does?
For example, the place to be for the immediate foreseeable future is gold and silver, gold and silver mining stocks, commodities and within commodities copper and Uranium, and commodity stocks.
I am in the process of shifting my investments to these. Whether I am right or wrong only time will tell, but there is no option but to have a view and act on it.
Ultra defensive plays like shifting predominantly to debt at 7 to 8 percent taxable is also likely to be disastrous with high inflation on the cards across the world.
We are living in very interesting times.
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