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Tweet Buster: A way to beat poll volatility & time to invest in gold?


NEW DELHI: India’s long-drawn poll season finally came to an end on Sunday. Till the final verdict is out on May 23, the stock market will navigate through exit poll results and on Thursday investors would know who will be India’s next Prime Minister.

Shankar Sharma, Samir Arora, Sandip Sabharwal, Porinju Veliyath and Shyam Sekhar were among Dalal Street mavens giving out advice on how to navigate market during election results week.

Domestic market moved sharply on Friday and Shankar Sharma said that this upmove was maybe on account of leaked exit polls that show BJP winning elections hand down.

Looking at the stock market’ s move today, it’s clear that Exit Polls leaked, and that BJP is winning the Exit Polls hands down

— Shankar Sharma (@1shankarsharma) 1558115196000

Sharma called exit or main polls the “red herring” prospectus for the stock market. “Economy has its wheels coming off, has run into the ground, etc etc. Not even a single domestic sector is even crawling. Rarely seen crisis like this. This market is turning into a nice, black toast,” he added.

The Exit/ main polls are red herrings insofar as the stock market is concerned. Economy has its wheels coming off,…

— Shankar Sharma (@1shankarsharma) 1558166435000

Samir Arora, fund manager at Helios Capital also called the long drawn out election process to be bad for the economy.

This long election process may be great for fairness in elections blah blah but really bad for economy, govt. decis…

— Samir Arora (@Iamsamirarora) 1557905710000

Sandip Sabharwal made a case for the return of Narendra Modi, saying an otherwise situation, given the current slowdown in the economy, would mean a sudden collapse for the market.

Basant Maheshwari had an important tip for investors to save themselves from the election volatility — stick to the best companies.

The market is discounting 240 seats for the NDA. But what if everyone gangs up against @narendramodi. The 3rd fron…

— Basant Maheshwari (@BMTheEquityDesk) 1557967297000

Porinju Veliyath, Founder & CEO of Equity Intelligence, meanwhile, conducted a poll asking the preference for the next Finance Minister if Narendra Modi government comes back to power and Piyush Goel seems to be the popular choice.

Elections nearly done and dusted! Capital Markets and the Investor Community eagerly waiting to know who the FM wou…

— Porinju Veliyath (@porinju) 1558159279000

Enough with the election fervour, now let’s take a look at the investment advice that the top Street names have to offer.

A. In this thread, Shyam Sekhar shares how investors are so hooked up on the pace of their returns and benchmark them, but failed to realise that indices work quite differently. He says, “You must work within it to compare with it.” He continued saying that the highest returns came to his portfolio after years of sideward moves.

Many people love to #benchmark returns, watermark their portfolio & keep the race to #returns closely monitored lik…

— Shyam Sekhar (@shyamsek) 1558058117000

FINAL TIP: One can’t take objective decisions that will work over years when gripped by fear

B. In this next thread he shared how to manage your fear and greed.

Managing #fear is no easier than managing #greed. Yet, we spend disproportionate time managing it. Rarely do we han…

— Shyam Sekhar (@shyamsek) 1557971228000

C. Focussing on good companies and business models seem to be the age-old advice that Basant Maheshwari has to offer when wondering how to multiply your wealth.

Focus on the company, the business model, growth, sector leadership and the return ratios. Buying stocks on the bas…

— Basant Maheshwari (@BMTheEquityDesk) 1557844114000

D. In another one of his tweets, Sekhar shares his reason for his deep mistrust of the IPOs.

I just deeply distrust #IPO’s. They have no way of protecting my interest against an army of others acting against…

— Shyam Sekhar (@shyamsek) 1557885856000

In a lighter vein

Samir Arora has a tongue-in-cheek remark for the recent Uber IPO that hit Wall Street last week.

Kuber- lord of wealth Uber- destroyer of wealth

— Samir Arora (@Iamsamirarora) 1557746831000

E. Sandip Sabharwal makes a case for investing in gold to benefit from trade woes.

Gold will be the biggest beneficiary of growing tensions between nation’s. Watch that space.

— sandip sabharwal (@sandipsabharwal) 1557798498000

Sanjay Bakshi, professor at MDI, on his twitter feed in answers to queries of people shared some pretty useful insights. Take a look:

Asset vs the company

Good question. Nothing will happen to the asset. Especially if it’s of real strategic importance. The Agra expressw…

— Sanjay Bakshi (@Sanjay__Bakshi) 1558064359000

The Paytm story: A lesson in behavioral economics

How did this happen? A few answers from behavioral economics and other fields…

— Sanjay Bakshi (@Sanjay__Bakshi) 1558015132000

Whistleblowers: Effective saints of civilization

What happens when someone blows the whistle? Whistleblowers are the effective saints of civilization. They take gr…

— Sanjay Bakshi (@Sanjay__Bakshi) 1557770096000

Behaviour of credit rating agencies

On the behavior of auditors and credit rating companies: You would’ve noticed frequent downgrades by credit raters…

— Sanjay Bakshi (@Sanjay__Bakshi) 1557767492000

To end on a philosophical note here’s something from Samir Arora

Philosphical question: How do DIIs know how much FIIs plan to sell on any day, for they end up buying- more or less- similar amount?

— Samir Arora (@Iamsamirarora) 1558010316000

Source: Economic Times