ComfortableTrader

The overall Union budget 2024, continues on a path of fiscal consolidation, revising the target to 4.9% of GDP for FY25 (down from the earlier target of 5.1%, thanks to the RBI's dividend and tax buoyancy) and setting a target of 4.5% for FY26, which is a hugely positive sign. Three key proposals impacting the capital market the most are:
1. Increase in capital gain tax.
2. STT on F&O.
3. Taxation on buyback of shares.
From July 23, 2024: -
Short-term capital gain tax will increase from 15% to 20%. -
Long-term capital gain tax will rise from 10% to 12.5%. -
The indexation benefit on the sale of property, gold, and unlisted assets will be removed.
Additionally: - STT on futures will marginally increase from 0.0125% to 0.02%, and on options from 0.0625% to 0.1% on premium.
- Buyback of securities will now be taxed similarly to dividends, and capital losses generated on buyback can be set off against other capital gains.
These changes impose higher STT charges and higher taxation on gains, presenting new challenges for investors and F&O traders who take significant risks by investing their money.

Budget 2024 This is what you might have missed. Insights from a Market Veteran .
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Budget 2024 This is what you might have missed. Insights from a Market Veteran .
The overall Union budget 2024, continues on a path of fiscal consolidation, revising the target to 4.9% of GDP for FY25 (down from the earlier target of 5.1%...

Sudhir Gopal
Admin
Top contributor
· 20 h ·
Eco Survey cautioned against retail explosion in F&O.
Markets will be relieved if Budget doesn't touch taxes! - focus on whether tax on F&O income could change in budget.
Divergence: FIIs long vs HNIs short

Jugdish Ahuja
Admin
Top contributor
· 23 h ·
The union budget presents challenges this time for option traders as retail traders have stepped in and diverted a lot of household savings not only into the cash and equity markets, but also into the derivative markets where in 98% of traders lose money. Hence the Govt has hinted at steps for tackling this crisis. Here i have discussed various options that are in front of the Union finance Minister today.

https://www.youtube.com/watch?v=UxMyhTlsRjE

Budget 2024 This is what you might have missed. Insights from a Market Veteran . The overall Union budget 2024, continues on a path of fiscal consolidation, revising the target to 4.9% of GDP for FY25 (down from the earlier target of 5.1%...

Will Fed Reserve raise interest rates is the million dollar question as it impacts all global markets. We maintain that the Federal Reserve plans to keep the interest rates high, which they've maintained for 22 years, to control the US economy. They want to be cautious because inflation is a big concern.

The committee responsible for these decisions won't raise interest rates during their recent meeting. They want to be careful about making changes because inflation is stubbornly high.

Since March 2022, the Federal Reserve has been working hard to reduce spending by businesses and consumers to fight high prices.

The Federal Reserve will also share what its officials think about the economy. They'll probably say the economy is doing better than they thought in June, and they want to keep interest rates between 5.25% and 5.5%, which might mean one more small increase this year.

But they're not sure if they should make things even tighter. They are worried about problems that could hurt the economy, like problems in the job market and other challenges.

The officials also worry that the higher interest rates they've set might be starting to cause problems now, like fewer jobs. There are also new problems like students having to pay back loans, a strike by autoworkers, and the possibility of the government shutting down.

The officials are thinking about all these concerns, but they also see that people are still spending a lot of money, which could keep prices high.

And there's one more problem. Oil prices have gone up because there's less oil available. This could make many things more expensive.

While some people think the Federal Reserve will keep interest rates the same until 2024, many economists believe they need to do more to control inflation. Most economists think there will be at least one more small increase in interest rates, and some think there could be two or more. They don't expect the Federal Reserve to lower interest rates until at least the third quarter of next year or even later.

Here are some of the best quotes from Morgan Housel on Investing & Money.

1. "Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach, even to really smart people."
- This quote highlights that success in managing money isn't just about having knowledge or intelligence. It's more about your behavior and how you handle financial decisions. Good financial behavior, like saving, investing wisely, and avoiding impulsive spending, is essential for financial success. However, changing behavior can be challenging, even for intelligent individuals.

2. "Money’s greatest intrinsic value—and this can’t be overstated—is its ability to give you control over your time."
- This quote emphasizes that money's primary benefit isn't just its purchasing power; it's the freedom it provides. With enough money, you can have control over your time and life decisions, allowing you to focus on things that truly matter to you.

3. "Use money to gain control over your time, because not having control of your time is such a powerful and universal drag on happiness..."
- Building on the previous point, this quote underscores how lacking control over your time can negatively impact your overall happiness. Money used wisely can liberate you from mundane tasks and jobs you dislike, enabling you to pursue activities that bring you joy and fulfillment.

4. "Assume the worst, hope for the best, and accept reality."
- This quote advises adopting a balanced mindset when making financial decisions. It suggests being prepared for challenges (the worst), maintaining optimism for positive outcomes (the best), and facing the reality of the situation with a clear perspective.

5. "Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you."
- This quote emphasizes that saving money can be achieved by controlling your expenses. One way to spend less is by reducing your desires and focusing less on external validation. When you're not overly concerned about others' opinions, you're less likely to engage in excessive spending.

6. "If you want to do better as an investor, the single most powerful thing you can do is increase your time horizon. Time is the most powerful force in investing."
- This quote stresses the significance of a longer-term perspective in investing. The longer you hold your investments, the more you can benefit from the compounding effect and ride out market fluctuations.

7. "The best company in the world run by the smartest management can be a terrible investment if purchased at the wrong price."
- This quote highlights the importance of not just considering the quality of a company but also the price you pay for its stock. Even an exceptional company can be a poor investment if you buy its stock at an inflated price.

8. "Spending money to show people how much money you have is the fastest way to have less money."
- This quote points out that trying to impress others by displaying your wealth through conspicuous spending can quickly deplete your financial resources.

9. "Getting rich and staying rich are different things that require different skills."
- This quote draws attention to the distinction between achieving wealth and maintaining it. Gaining wealth might involve risk-taking and entrepreneurial skills, while sustaining wealth requires prudent management and a different set of skills.

10. "Investing is not the study of finance. It’s the study of how people behave with money."
- This quote reframes investing as an understanding of human behavior in the context of money. Successful investing involves recognizing how emotions, biases, and psychology influence financial decisions.

These quotes from Morgan Housel provide valuable insights into the psychological and behavioral aspects of money, investing, and financial decision-making.

Hope it made sense to you as well. Happy Investing !!

Investing is a bit like farming. Let's imagine you have a little farm where you grow crops. Here's how you can think like a farmer when it comes to investing:

1. Don't rush: Just like a farmer doesn't yell at the plants to grow faster, don't expect quick results from your investments. Be patient and give them time to grow.

2. Be understanding: Sometimes, plants take time to grow bigger and give fruits. Similarly, investments may not always make money right away. Don't get upset if they don't grow quickly.

3. Stay committed: A farmer doesn't pull out plants too early; they let them grow and mature. Likewise, don't sell your investments too quickly just because the market goes up and down. Stick to your plan.

4. Choose wisely: Farmers pick the right plants for their land. Similarly, do your research and pick investments that fit your goals and what you can handle.

5. Keep adding: Farmers water and fertilize their crops to help them grow. Keep adding money to your investments regularly to make them grow too.

6. Remove the bad stuff: Farmers remove weeds that hurt their crops. Get rid of investments that aren't doing well and focus on the good ones.

7. Expect ups and downs: Just like farming has good and bad seasons, investing has its ups and downs. It's natural, so be ready for both and don't panic when things get tough.

So, remember to think like a farmer when you invest - be patient, choose wisely, and take care of your investments for a bountiful harvest in the long run!