Varun Manmohan Kapur told that TINA driving returns in stock markets
No, TINA is not the girl next door, says Varun Manmohan Kapur, currently an investor and former Yes Bank official. Nor is TINA a hurricane or cyclone in the United States. ‘There Is No Alternative’ abbreviated as ‘TINA’ was a phrase coined by philosopher Herbert Spencer. Varun Manmohan Kapur Former Yes Bank official, says with other asset classes giving negative real returns in the current economic environment, it’s the TINA effect that is driving returns in listed equities.
Bond yields continue to be depressed and so are yields from bank deposits. While junk bonds offer opportunities to make real returns, with the Covid backdrop (and repeated lock downs), it remains difficult to place bets (risk reward not always favorable). As per Varun Manmohan Kapur, some of the sectors impacted by Covid which essentially placed so called junk debt paper are yet to return to normalcy stretching their balance sheets that much further.