ICAI Abu Dhabi: 2 mantras to succeed in stock market

Dubai - For the first time in 18 months, the Institute of Chartered Accountants of India (ICAI), Abu Dhabi Chapter, hosted an in-person event titled: ‘A Sneak Peek into Investments, Tax and Succession Planning’.

The giant wheel concept and the lake of return theory are two mantras to unlock the safe of stock markets, chartered accountants heard during an event held in Abu Dhabi.

For the first time in 18 months, the Institute of Chartered Accountants of India (ICAI), Abu Dhabi Chapter, hosted an in-person event titled: ‘A Sneak Peek into Investments, Tax and Succession Planning’.

“We are thankful to the leadership of the country, who took so much care and protected the people during this pandemic. The ICAI family has emerged stronger,” chapter chairman CA Neeraj Ritolia said.

CA Krishnan N.V., general secretary, and CA John George, vice-chairman, highlighted the importance of the three-session event for expatriates.

CA B.P. Sachin Kumar, chief strategic partner, Manohar Chowdhry and Associates, covered the topic of tax and financial planning. Mohammad Marria, managing director, Just Wills, spoke about the need for succession planning and will creation.

Shankar Sharma, co-founder, First Global, in his session: ‘Don’t be a bull or bear, be a hare’ gave insight into his two key learnings to invest in the stock market.

“The market is a giant puzzle but each part fits with the other.”

On his theory of creating a permanent bull market in a portfolio, Sharma noted that during the mini-crash of 1997 and dot-com bubble, the Asian, European and Nasdaq, and commodities were simultaneously up and down.

“You can create a permanent bull market in which you are immune to market cycles. Every bear market is accompanied by a bull market in something else, in some part of the world. Markets are a giant wheel. A car at the top will come to the bottom but by necessity the car at the bottom will go to the top. Every market movement, whether within equities or in all asset classes, is a giant wheel. So, If India is in a bear market, something has to be in a bull market.”

In his ‘Lake of Returns’ theory, he compared markets to a lake equating very low returns to deficient rainfall, and once the bottom is hit, it will rain, which marks the return of the bull market. It’s only when the capacity is crossed that a devastation happens.

“Using this theory, I have been able to catch every single bear or bull market in the past 25 years, including last year’s pandemic,” Sharma added.

— ashwani@khaleejtimes.com