Gold & Oil are getting cheaper.

1 out of 10 investors I meet with these days, at least 6 of them ask me about buying Gold now as the prices are lower. Is it truly low? Who determined that it was high, so that it is quantified as low now?

It is just that we had witnessed Gold prices at 3500 a gram, which got recorded in our mind and now when we see the prices at 2500 a gram, it feels like it is cheap.

After a stupendous decade long rally and a false break out in 2013, Gold began to take rest. It is into a phase of slow decline, and every time it reaches a support zone, it will show a bounce, which will make people feel that they have missed a good buying opportunity that was available a few days back.

But, it will only coil back and move below the previous lows. Unfortunately, at least people in India forget the low and are only recording high prices in their minds. Don’t buy Gold till it has a confirmed breakout, which may take years to come.

Gold has done something that it did not do since 1999, Gold prices have hit lower levels for the 7th consecutive week, it is the longest period that Gold is down since 1999.

By the way, if you have a requirement to buy Gold for an occasion, please go ahead. At least for now, treating Gold as an investment will only erode value. If there is a requirement in future for a wedding or similar occasion, invest regularly into Equity, and when the time comes for the purchase, liquidate Equity holdings and purchase Gold, this will help you get more quantity of Gold than if it was accumulated slowly, just to meet a requirement on a later date.

Please don't worry about the risk in Equity investments, Equity gives 3 times more profits than Gold, if managed well.

Similarly, Crude has also been hitting lows and it is to some extent good news for our economy as we save precious dollars spent on importing Crude. Compared to Gold, Crude is on a different pace. The next time it reaches the previous lows, 2720 a barrel in Indian markets, one can see a strong rally. Beyond certain levels, lower Crude will have counter impacts on the economy. This said, should we keep paying higher price for this most essential fuel? Not required, it will just hold till there is an alternate fuel available or the environment gets adjusted to a convenient way of not using Crude.

OMC’s are making good profits because Crude is low, HPCL is one stock which has made 50% gains on its stock price since last 6 months, by far a biggest gain among other OMC’s.

HPCL has another advantage too with its lube oil sales, which is giving the stock more contribution in profits.

7 out of Top 15 Mid Caps in our Portfolio

Midcap stocks have been the Show Toppers this year, In the last 7 months, they have rewarded between 7000 to 15000 Cr to investors. The following is the list of best performing stocks.

Out of the 15 toppers our portfolio has 7 stocks. Eicher, HPCL, Bajaj Finserve, Aurobindo Pharma, Ashok Leyland, Marico & Glenmark Pharma. Our holdings in the top performers have been helping us give high return on investments on a consistent basis.

Midcaps have given 10.50% profits in the current year, while the SENSEX has given only 2.10%. Large cap stocks have been the laggards this season.

The best part is that, all these investments have come into the portfolio through our automatic stock selection mechanism. Our application ensures that we are invested in the right place, at the right moment. This feature has been helping us give best outcomes on the invested funds.