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We all know that economics & stock market are correlated. Macro & Micro economics ultimately influence stock prices in the long run. In this article, we will attempt to explain the correlation between the two in a simple language. Understanding this is essential to every investor. Economic analysis is one of the pillars behind equity forecasting. It plays a key role in arriving at probable future returns from equities. For HNIs, who invest across the world, economic analysis helps them to shortlist countries with expected future returns.

Our Ace readers may recall that this article was originally published on AI Post in Aug 2017 (link), predicting upcoming slowness in equities. Since market conditions have changed so we are updating & re-publishing this article in today’s context. 

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If you are a long term investor then ongoing correction is more of an opportunity rather than disaster. Currently, we are in a phase where there are plentiful opportunities. If you have the right process & patience then in the next couple of years, some of these small caps will touch a new high and in the process shatter previous all time high records. Coming back to process, we can take a clue from legendary investment gurus and apply their investment process to unearth such hidden gems.

@ AI post, we are writing a series of posts in which we publish stock watchlist of famous investors by applying their filters on Indian small cap stocks. Last week, we had Benjamin Graham (click here to read) and today we have Warren Buffet. We are keeping the language simple and contents precise.

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Smallcaps have fallen like a pack of cards. Correction has been severe but much awaited after sharp rally over the last couple of years. This correction has also opened up many exciting opportunities. This is the time when ace investor will buy promising smallcap stocks to enjoy multibagger returns in 2022-23.

We have seen a full cycle within smallcaps. This cycle gets repeated every 5-6 years. Last time it happened around 2012-13 and ace investors enjoyed returns few years later. However, mastering this is not easy since in every cycle, multibagger stock name will change. Today’s multibagger may not necessarily survive this correction. So, key to superlative gains is to wisely choose next set of multibagger stocks.

@ AI post, we are writing a series of posts in which we will publish a stock watchlist of famous investors. It may be wise to analyse what legends will buy in today’s market post correction. This list is curated by us based on their principles. More than stock list, there is a lot of learning as we touch upon investment principles of these legends.

We want everyone to understand the concepts and since we know that people don’t have more than 5 minutes of attention span, so we are keeping the language simple and contents precise. For the purpose of this study, we are running filters only on smallcaps, so midcap & largecap are not considered. True to our ace reader’s interest!

Today, we have Benjamin Graham. Next week will be his disciple Warren Buffet.

AI Advertisement: We proudly follow Benjamin Graham’s principle to run our portfolio service, MultiCAP Multibagger. Portfolio continues to stay positive with 26% annualized returns despite ongoing correction in small & mid caps. If you want to join us (click here), delay no further as this is one of the best time to start investment.

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Arguably, it is a tough year for small caps. Nifty small cap index has fallen by -17% from 1st Jan 2018 till date. At individual stock level, it has been more severe. While there is a lot of discussion of this correction, there are limited articles which explains this fall and advice investors. In this article we are trying to bridge that gap by explaining the real reasons of this fall and what should be the best coarse of action for investors.

AI Advertisement: Despite falling market, our portfolio is still clocking around ~ 43% returns. This is despite 78% portfolio allocation to mid and small caps. Quality rules above chaos. Join us for steady wealth creation (click here)

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This year small & mid caps are witnessing good amount of correction. This is not a normal correction but a deeper one as there have been multiple rounds of mini corrections within this phase. The euphoria of small investors has vanished as they get depressed with huge losses, especially those who made fresh entry in Jan’18 are finding it hard to digest. In this article, we share our thoughts & views on how to handle such deep corrections.

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Lot of investors joined stock market in the bull years of 2016-17. Most of them made good money only to loose it all in 2018. In our conversation, 8 out of 10 small cap investors are back to early 2017 levels as small caps is receiving consistent hammering since Feb’2018. Naturally, various questions are coming to investor’s mind, is 2018 a year of bears? Shall I exit stock market and come back when bulls are in operation? In this article, we present our view on it including the real drivers of poor performance and what possibly lies ahead.

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Keeping up the tradition, we continue to post different varieties of topics under AI Post.  Today, we are publishing investment story of one of our subscribers. He wants to keep his name confidential but agreed to share his investment experience with us. There are plenty of lessons in his story and I am sure at some point of time, all of us have committed to same mistakes during early days of our investment journey. Without wasting more time, over to him.

AI Advertisement: This Communication technology stock gave our subscribers 89% annual returns. Poised to go further up. Click here to join our services.

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Most of the readers of AI Post are either young or middle-aged people, who are tech savvy and use smartphones extensively. If you are one the them, today’s article is dedicated to you.

We all know that inflation is the biggest enemy which we face in our financial life. Interstingly, inflation can be different for different sectors. For example in telecom, instead of inflation, it is deflation as call rates keeps on dropping. For groceries, it is in the range of 6-8% for last 20 years. Do you know the worst of them? It is not one but two. It is Medical Inflation (14% annual) & Education Inflation (10% annual). In some ways, they are related as well (we will explain it later). The problem is that no one can escape medical inflation as our human bodies are bound to grow old and catch diseases. The question is not “if” it will happen but “when” it will happen. You are ace reader of AI Post, you should be prepared and not caught unaware.

In this article, we will discuss trends in medical inflation, role of private insurers and medical colleges, and how badly it can impact us in future. Of course we have a solution as well and it is not just buying insurance. We are stock advisor and not insurance advisor, but we continue to encourage our readers for their overall well-being even if it is not linked to our core business activity.

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India is the largest importer of defence weapons in the world. Even China and United States lag behind India when it comes to weapon import. With third largest armed forces of the world, India imports almost 60% of weaponry from abroad. This has a huge fiscal impact as large amount of foreign currency leaves our country and puts pressure on balance between exports and imports. Current Government is pushing “Make in India” policy for defence equipment manufacturing within the country. Defence budget in 2018 Union budget is roughly ₹ 404,365 crore. This means huge opportunity is waiting to be tapped. In this article we explore some of the listed stocks which should benefit from this phenomenon.

AI Advertisement: After recent correction, smart money is entering into quality stocks. Are you one of them? Sow seeds for future multibaggers today!

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We continue to share our approach and process with “Ace Readers” which can benefit them in the long run. Many research houses will feel shy in sharing their methodology but we do not. It is imperative that as “Ace Reader” of AI Post, you gain knowledge and wisdom over a period of time. The objective is to share pieces of information to make you a better investor who is prepared for long term wealth creation. Coming back to today’s post, this is the second and final article of the series which talks about nitty gritties of constructing a good portfolio. In the previous article, we shared our checklist for picking a multibagger stock. (click here to read)

AI Advertisement:  Prolonged market correction after a gap of almost 3 years! Make the most of it by investing into quality stocks. It is a discount sale. India is going to prosper for many decades to come. The bear moments, like today will define who is going to get rich tomorrow. Click here to join this bandwagon

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There are more than 5000 companies listed on Bombay Stock Exchange (BSE). Out of this, large cap are typically the first 100, mid cap comprises of next 300-400 odd stocks, the rest of the universe of around 4500 companies belong to small caps (though all are not actively traded). Most research houses track and focus on 200 to 400 stocks at maximum stretch which leaves huge number of small caps (around 4500) under-researched and under-represented to investors. If you look at it, this is almost 90% of stocks not covered by research. This leaves a huge opportunity for common public to research and unearth multibagger gems from this lot. The problem is that it is easier said than done.  Since we specialize in small caps, we are going to spill beans on our secret sauce of what we look into before identifying potential multibagger from the world of small caps.

AI Advertisement: Confession times. We have just closed Kakatiya Cements at a loss of -38%. We own it and updated our paid members about it. However for every Kakatiya, we have stocks giving us 625%, 459%, 142%, etc returns as on 11-Mar-2018. JOIN true & responsible wealth creation with us.

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US president Donald Trump is in news again, this time for his announcement of imposing import duty on metals, primarily of 25% on steel & 10% on aluminum has sent metal stocks plummeting. In this article, we analyse the impact of import duty on major steel companies in India and what lies ahead with such policies in force.

AI Advertisement: Ongoing correction has been harsh, yet bottom is not in sight. Smart investors are switching over to quality stocks that can withstand such pressure and shoot up once bulls are back.

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Year 2018 has started on a tough note for stock market. The much awaited healthy correction is ongoing. Sensex has lost almost 2000 points from the peak 36,200 odd levels. This correction has brought down many stocks across different sectors. Sectors like FMCG and Retail are still expensive despite this correction. However, there are sectors which were not doing great from last two years and this correction has further pushed them down. Media and Entertainment is one such sector where there is plenty of value for long-term stock pickers. In this article, we will analyse the potential of media sector stocks for two years time frame.

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Public sector banks are in storm again. This time due to ₹ 11,000 crore PNB scandal which has rocked the market. At all time high and elevated valuations, market has been waiting for bad news and it keeps on coming. First, long term capital gains taxation on equities and now, public sector bank meltdown. These corrections mean that both good and bad all stocks will go down and present investment opportunity. PSU Banks have crashed and some investors are thinking if it is a right time to buy. Let’s go into the details.

AI Advertisement: 7 times returns in two years!! Still a “Buy”.  Subscribe now for joining future multibaggers today

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Equity market is in a phenomenal bull run. It has attracted many first timers into equity investment. The bull run is sweeping and pulling most of the stocks up. In fact, it is hard to under perform in such a market. More participation from retail investors is good but the worrying factor is their lack of knowledge about basic principles of investment. Asset allocation is one such aspect which is largely ignored by everyone on bull market and regretted later. Even among the people who are aware of the basics, there is a lot of misconception about practicing it. In this article, we will simplify the concepts of asset allocation and their re-balancing.

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Budget.jpgThis is the time of the year in which all focus shifts to union budget. Budget is purely an economic event which provides insights on government’s spending plans. This year’s budget is going to be crucial since general elections are planned in 2019. In this article, we explore sectors that are more likely to get impacted by the budget.

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600% and counting. We recommended this environment friendly product manufacturer at ₹17 which is now trading in triple digits. FIIs or Mutual Funds yet to enter. We still have “Buy” recommendation because of huge re-rating scope. Upgrade to our subscription plans and create true wealth. Click here 

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If you have a subscription with a paid stock advisory service in which you are getting new stock recommendation every month, there are chances that after a year or two, your portfolio will swell up to 40-50 stocks with similar weightage assigned to each of them. Even if half of them gives you good returns, the other half will drag your returns back to normal. In this article, we will explain how to invest under “new stock per month” kind of service. This approach is specially designed for small and mid cap stocks. We highly recommend you to use this approach even for our monthly stock recommendation service Tiny CAPS

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  • Returns for MultiCAP Multibagger: 63% CAGR
  • Returns for Tiny CAPS: 82% CAGR

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We are in the first week of 2018. Various financial dailies are posting list of stock ideas and financial resolutions. However, we at AI believe that it is the overall well being that matters. Money is important but it can not buy peace and happiness. In this introspection week, we are sharing some of the activities you can consider doing in 2018. We will not call them resolutions as they often break within January itself. You can consider them as pointers which can be worth doing in 2018 based on applicability as per your situation.