7 Fundamental Truths to Digest

Amar Pandit , CFA , CFP

September 11, 2020 | 1 Minute Read

  1. People are going to Live Longer.
  2. Lifestyle Inflation will be High. This is not the normal inflation we read about but the lifestyle inflation that impacts us.
  3. Interest Rates are likely to remain Low.
  4. Thus to beat Lifestyle Inflation, Asset Allocation to Equity will need to be higher than before.
  5. The world will continue to surprise everyone. In short, it is not a Small world, it’s a VUCA (Volatile, Uncertain, Complex and Ambiguous) world.
  6. Indian Equity Indices will always be expensive (except during sharp temporary declines) because a lot of money is chasing the same set of stocks. A lot of companies are choosing to stay private thus supply of high-quality companies in the market seems to be limited.
  7. Finally, Expect the number of Bullshitters and their strategies (sorry stories) to go up. Protecting yourself from their stories and theories will be the key to investing success.