World Trade Organization calls this “Deepest Recession Ever”, 87 million Americans have filed for unemployment benefits.

And the US Markets are going up.

Ditto in India. In March the equity markets fell. In April the market is up.

Why is this happening?

Well, for the markets to go up you need Fundamentals and Liquidity. Right now we know that Covid-19 has hit at least 140 countries!

Who knows when the Vaccine will be found. Well to put things in perspective, Charlie Munger, Warren Buffett, Narendra Modi, Trump – none of them know it. In fact it is so competitive that even P Chidambaram, Rajdeep Sardesai, Ramchandra Guha….even these worthies do not have an answer.

Should you invest in equities? Well it depends on your view about when the Virus will be conquered – and the Vaccine be found. If you are not sure about where to invest you should be in a hybrid fund. I am assuming that this fund is like BAF – Balance Advantage fund. I would go to the original BAF – Naren, if I have to invest in a baf at all.

Personally, I do think that the equity will be violently volatile. The banking bloodshed has not yet started. RBI does stupid things like giving an Interest bearing ‘moratorium’ . This is going on for 3 more months.

Personally I have chosen 2 funds – new ones in my head.