2015, Negative year for the Major asset classes !!!

2015, Negative year for the Major asset classes !!!

There is a famous saying in portfolio Management theory that “don’t keep your eggs in one basket” means diversification is necessary for the better returns. But the year 2015, couldn’t work as per this theory. After a 3 consecutive positive returns since 2012, 2015 couldn’t work as per the expectations of many bigwigs. Indian equity market started with solid gains and climbed to all time high at 9150 levels but finally lost all gains and closed in red. On the other side because of the positive US data and economic number Indian rupee hammered and closed near its year’s high. But the one asset which hammered the most in the year 2015 was Commodity. Gold, Silver, Metal and Energies plunged and touched their lowest levels in last 8 years.

The depth of losses in equities and commodities is nowhere near as bad as in 2008; the correlation of declines highlights the challenge for money managers who seek to amplify returns by rotating among assets. Coming to the real asset investments, in the last one year investors would have earned a better rate of return if they had invested in a fixed deposit. The only investment class that stood as per the expectations of few investors is Bond market. All credit goes to the falling crude and commodities price which helped the Indian Central bank to reduce the interest rates. Commodities have fallen to a decade low as tepid global inflation dimmed the allure of precious metals, weak Chinese demand hurt raw-materials prices and a global supply glut sent crude oil tumbling.

Even India currency couldn’t take the advantage of falling price of falling interest rate parity between US and India. A record $8 billion flew out of the economy because of the better and safer return from the US bond markets. Indian rupee fell by ~ 9% where Equities gave negative return of negative ~2.5%.

But the main question is , were the smart players were not so smart this year?? Let’s discuss few minor but major events that could have saved many investors. Starting with the Positive economic and former US Fed governor Ben Bernanke’s word “US is in better shape and we would thinking of raising rates when the US unemployment rate would fall till 5%”. Simple lines could have helped many players. This is obvious that US was going to raised rates till the December 2015. Other important words by the Saudi king “We have enough cash reserves” means they are reading to incur losses to combat US rising crude reserve or in a simple words WAR OF EGO’s. Last but the not the least, China’s ghost city that was built few years back. This could have helped in understanding Commodity crisis in advance.

But few investors would have gained stupendously in few Mid Caps companies like Jet Airways and Spice jet by just applying common sense that falling crude having these stocks have strong negative correlation.

Hence it’s time to say goodbye to the year 2015 and welcoming 2016 with an open armed.


We wish a very happy and wealthy  New year to all !!



Morning Business News Round up_September 11, 2015

Morning Business News :

  • Global Economic Turmoil Will Not Hit India: Finance Ministry Panel
  • Spectrum Trading May Curb Excessive Bidding: Fitch
  • Gold Monetisation Scheme: 2% Interest Likely On Gold Deposits
  • Satyam Scam: Sebi Asks Raju Family, Others To Return Rs 1,800 Cr
  • Rbi Purchased $4.6 Billion In The Forward Markets In July
  • Rcom-Sistema Deal May Cost $600 Million Extra
  • Infosys To Be Global Tech Services Partner For Atp
  • Care Downgrades Rs 100 Crore Hindustan Organic Bond To Junk Status
  • Rbi Allows Importers To Raise Trade Credit In Rupee


  • Ril’s Start-Up Hub Fall 2015 Batch Includes Two Israeli Start-Ups
  • Rbi Intervenes More Through Forwards In Foreign Exchange Market
  • Tata Motors, Total Lubrifiants Sign Pact For Lubricants Supply
  • Vedanta Aluminium Goes On Workforce Reduction, Cost Cuts
  • Lenders Order Special Audit Of Amtek Books
  • Centre May Hold On To Hzl-Balco, Suuti Stakes In Foreseeable Future
  • Canada To Invest Pension Funds In India’s Urban Development
  • Make Govt Auditor Part Of Legislature, Amend Act: Pacs
  • India Keeps Its Fingers Crossed As Superpowers Toss And Turn
  • Tata Steel Begins Coke Production At Kalinganagar Plant
  • G20 Tightens Norms To Check Conflict Of Interest For Fiis
  • Winter Session Could Be Advanced To Pass Gst Bill: Venkaiah Naidu
  • Saudi Aramco To Open Office In India For Crude Sales: Report
  • Delhi Hc Refuses To Interfere In Ongc-Ril Gas Dispute
  • Bpcl To Invest Rs1 Trillion For Its Next Phase Of Growth
  • Sun Pharma Planning To Divest Ireland Plant To Cut Costs
  • Castex Technologies Allots Shares On Fccb Conversion
  • Govt Clears Rs9,000 Crore Teesta Hydropower Project In Green Energy Push
  • Sensex Ends 97 Points Down On Weak Global Cues, Nifty Settles At 7,788
  • Hero Motocorp Plans Manufacturing Units In Mexico, Argentina, Brazil
  • Arvind Panagariya Pitches For Up To 1% Rate Cut By Rbi
  • Domestic Car Sales Rise 6% In August, Bike Sales Drop 9.59%
  • Cairn Energy Set To Go To Icj Against India
  • Raymond Acquires Robot Systems For Rs 28 Crore
  • Inflation To Ease In Aug, July Industrial Output To Be Stable
  • L&T Gets Shareholders’ Nod For Raising About Rs 9,600 Cr
  • Mauritius Utilises India’s Security Concerns To Retain Tax Arrangement
  • Mfs Invest Rs 4,200 Cr In Equities So Far In Sep
  • Indigo’s Profit Up Four-Fold To Rs 1,304 Crore In Fy2015
  • Suven Life Gets Patents For Neurodegenerative Drug