Filmy dialogues and finance classes – a recap of the excessive drama in 2022

Data is humorous; it conceals as a lot because it reveals. The Nifty was up 4.3% in 2022. As tepid as it might sound, it masks the drama traders witnessed in 2022. A pointy crash in tech shares, the completely different shades of Russian president Vladimir Putin and his Chinese counterpart Xi Jinping, and a stirring inflation monster had been a couple of occasions that stored us on our toes. New traders had solely seen a dream run post-covid pandemic of 2021. The 12 months 2022 was a impolite shock.

Short-term market actions elicited the film buff in me. Movie dialogues make for nice metaphors. I’ve penned down some to recap the 12 months 2022.

“I’ll have what she’s having” elicited more than a few chuckles in When Harry met Sally, decades ago. Nothing amusing will come out of it if an investor follows it. Young investors should ‘skip the FOMO’ (fear of missing out). When asked why they have invested in cryptocurrencies, 75% of them say, “My friend made a lot of money in XYZ coin…”. Investing has grow to be more and more social however investing in an asset class as a result of one’s neighbour, buddy or a random individual has finished it’s a recipe for catastrophe. Invest in what you perceive.

3 Idiots is as timeless as they arrive. “Kaabil bano, kaamyabi to jhak marke peeche aayegi” (Chase skills; success will chase you on its own). The dialogue is apt for the IPO (initial public offer) market. In 2021, the unicorn had become the country’s favourite animal and founders’ new hero. Investors rushed to pour money in popular new-age IPOs. Traditional metrics like P/E (price to earnings ratio) and profitability went for a toss until 2022 struck and the listings came a cropper.

The IPO market is just readying itself for 2023. It’s important to ask the tough questions. Chase profitability; valuations will follow on their own.

No movie article is complete without a Shah Rukh Khan movie. In Jab Tak Hai Jaan, he tells Katrina Kaif, “Har ishq ka ek waqt hota hai. Woh hamara waqt nahi tha par iska yeh matlab nahi hai ki woh ishq nahi tha” (Every love has its personal time; that point was not ours; nevertheless it doesn’t imply that we weren’t in love). 2022 was a 12 months when tendencies modified. Growth shares made means for worth. PSUs (public sector undertakings) and previous financial system names made a comeback. Domestic funds outperformed the worldwide ones. Plenty of traders have been asking if they need to transfer from development to worth, or worldwide to home. Every technique and asset class has its time. A unsuitable time doesn’t make an asset class unhealthy. The holding energy is a superpower.

The Joker’s “Why so critical?” from The Dark Knight has created countless memes. With the rise of financial influencers over the last few years, investment advice got a little too ‘not serious’. Anyone with a following could write a viral IPO thread on Twitter or get lakhs of views on a catchy YouTube video. The perils of taking advice from just anyone unravelled this year. The market regulator, Securities and Exchange Board of India (Sebi), is correctly looking to regulate finfluencers. Social media is not bad, but money is a serious business. You don’t take advice on a heart surgery from a YouTuber, do you?

Next up is Raaj Kumar’s oh-so dramatic lines in Saudagar: “Hum tumhe marenge… lekin woh bandook bhi hamari hogi aur waqt bhi hamara hoga” (I’ll kill you… however at my time and with my gun). It was India’s 12 months. At a time when recessionary fears hit US and Europe, India emerged because the fifth largest financial system. The nation didn’t spend its means out of covid like our Western counterparts. New India is ‘the confident India’.

Speaking of recent India, let’s acknowledge the one that mentioned, “Main udna chahta hoon, daudna chahta hoon, girna bhi chahta hoon, bas rukhna nahi chahta?” (I need to fly, I need to run, I even need to fall…I simply don’t need to cease). Retail traders who aspire to create wealth might wrestle or fall however they don’t cease SIPs (systematic funding plans). SIP flows have crossed ₹13,000 crore a month. The collective energy of home cash is stronger than international capital.

Happy investing in 2023.

Radhika Gupta is the MD & CEO at Edelweiss AMC, and the views expressed listed here are her personal.

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