Understanding mean, median, mode, standard deviation, regression, reversion to the mean – is a pre-requisite to understand financial markets. Let us see some simple examples: It rained 90mm in Mumbai on 22nd July. If it rains like this for 6 months continuously, Mumbai will be drowned. It was 43* C in Lucknow on 23rd May. [...]
I am a part of the team that does a column called “Portfolio Doctor” for Money Today magazine. This column is very popular – and the requests for being featured far, far exceeds the number of columns that can be carried. So here is what the editor of MONEY TODAY has to say about the [...]
There are a few companies even in the sensex which come with good results quite regularly. In fact the market likes such companies and gives it a high price earning ratio. So far this has been considered good behaviour and well rewarded. However the breaking of the Madoff scandal makes one feel uncomfortable about such [...]
I share a love-hate relationship with the media. I like many (most) of the media people I know, but am amused at the limitations with which they are made to work. Let us take an example. I got a call from one of the media kids I know. Media kid: Hello Sir…we have an investor [...]
Why do people become proud? Or what are the sources of pride? Let us enumerate the sources from where man / woman get their pride: Youth pride: ‘I am young’ is what Shankaracharya called ‘yovana garvam’. It is there is man right through childhood to old age! Money: “I am rich’ is also a very [...]
A couple of days ago I gave you a few reasons to buy gold. Here I am giving you a few more reasons. However let me warn you that I do not have any trading interest in gold, but do have an investment interest in a company called Deccan Gold which is the only gold [...]