What Is A Cockroach Portfolio And How Can It Help You Ride A Stock Market Crash?

The Cockroach portfolio is a four quadrant portfolio that combines the best of traditional long-only asset classes with derivatives to create a diversified masterpiece prepared for all economic regimes. This at a time when the Indian markets have been hit by concerns over what is happening in the US economy and the ongoing Israel-Hamas conflict. If the Bharatiya Janata Party-led NDA fails to secure a working majority in the forthcoming general elections, a 25 per cent fall, if not more, in the share market is all likely, Jefferies' Christopher Wood recently said. Data showed domestic stocks have historically performed well in the run up to general elections. Six months prior to 2019 elections, Nifty jumped 13.8 per cent; it went up 13.7 per cent in six months to general elections 2014. The index gained 3.5 per cent in run up to 2019 elections and 19.4 per cent in run up to 2004 elections, data compiled by Fisdom Research suggested. This is also important given that there are 80 million unique investors investing money in the Indian stock markets through NSE. NSE has 160-170 million accounts but if you remove the duplication, there are 80 million unique accounts, says NSE MD & CEO Ashishkumar Chauhan. These investors are actually 50 million unique households, which is 17 per cent of India’s all households put together, he added. Business Today TV’s Managing Editor Siddharth Zarabi Spoke To market expert Anand Tandon on What Is A Cockroach Portfolio And How Can It Help You Ride A Stock Market Crash?