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*The analysis of Greed & Fear cycle is not only affects stock markets but all walks of life includes real estate and other investment portfolios which one can easily relate and understand, hope reader of this article will find this piece of information very informative thanks Deepak Sundrani* Greed and fear refer to two opposing emotional states theorized as factors causing the unpredictability and volatility of the stock market, and irrational market behavior inconsistent with the efficient-market hypothesis.  There is an old saying in Wall Street, “Financial markets are driven by two powerful emotions – Greed and Fear” .  Legendary investor, Warren Buffet in his 1986 letter to Berkshire Hathaway shareholders wrote that, “Occasional outbreaks of those two super-contagious diseases, Fear and Greed, will forever occur in the investment community”. Investor behaviour driven primarily by Greed and Fear is responsible for the dizzying highs in bull markets and subsequent crash...

India’s weight in the Asia Pacific portfolio will rise, Jefferies Chris Wood said in his Greed & Fear report , citing the domestic stock market’s “extraordinary resilience” and optimism on vaccine rollout in the next six months. The Indian ‘overweight’ level on the Asia Pacific relative-return portfolio (excluding Japan) will be increased by 2 percentage points to 14%, back to where it was at the end of last quarter, Wood wrote in the report. That will come by reducing China’s weight by 0.5 percentage points and Malaysia’s by 1.5 percentage points. The fact that MSCI India has underperformed the MSCI AC Asia Pacific (ex-Japan) index by 4% so far this quarter, after outperforming 2.5% in preceding three months, also helped this call. Greed & Fear had reduced India’s ‘overweight’ level at the end of last quarter because of the near-vertical rise in Covid cases from the low reached on Feb. 11, which indicated the arrival of more infectious new variants. On a more short-term basis,...

Real Estate Private Equity (REPE) or Private Equity Real Estate (PERE) refers to firms that raise capital to acquire, develop, operate, improve, and sell buildings in order to generate returns for their investors. If you’re familiar with traditional private equity, real estate private equity is the same, but with buildings. As the “private” in “private equity” suggests, these firms raise capital from private investors and deploy that capital to make investments in real estate. There is little standardization to how real estate private equity firms are structured, but they all generally engage in five key activities: Capital raising Screening investment opportunities Acquiring or developing properties Managing properties Selling properties Capital is the lifeblood of any investment firm – without capital to invest, there is no firm. The capital raised by real estate private equity firms comes from Limited Partners (LPs). LPs generally consist of public pension funds, private pension fu...

Private Equity (PE) investment inflows into the Indian real estate sector stood at USD 1.9 billion (Rs 135 billion) in the first quarter of 2021, according to a report by Savills India. In Q1 2020, PE investment into the sector was at USD 0.65 billion. “The noticeable recovery in the real estate and the increased momentum of investment inflow into the sector is a clear sign of investors’ regaining confidence post the slowdown induced by the pandemic last year. The strong drive for commercial real estate in cities like Bengaluru, Hyderabad along with increased demand for residential are likely to play pivotal role in attracting more PE funds going forward,” said Diwakar Rana, Managing Director, Capital Markets, Savills India. Despite the remote-working culture, commercial office assets remained the frontrunner during Q1 2021, garnering more than half (58%) share of the investment pie. All the quarterly investment came from foreign institutional investors and was mostly concentrated in t...