As a financial planner I do spend a lot of time with 16 year olds working in call centers, media companies, banks and so on. When I am with them and discussing their problems, the one question that often comes to my mind is, “If these guys cannot make their monthly salary stretch one month, […]
I have been inundated with calls from friends and students on what an investor should do when he or she is staring at blood in their portfolios.It reminds me of the saying — ‘this too shall pass’. I do not know its origin, but am convinced that in investing, as in life, you should keep your […]
I have been in the markets for a real long time. As a friend says when we entered the market flying was considered dangerous and sex was considered safe! I started learning about something called PRICE-DIVIDEND RATIO. I was told dividends are the only thing that a small investor knows for real, so he should […]
Are the markets over heated? Are the PE ratios too high? are 2 questions that I have been asked a million times – right from the markets being at 3500 to 21000. And I have not been able to answer them. Only now I realised that the old definition of PE ratio – is the […]
Sir John Templeton said that the four most dangerous words in investments are “It is different this time”. I am sure we have heard this a million times! “India is growing at 9%”, “There is no alternative for international funds” FIIs are looking for growth. At this growth rate, India is cheap! Correct please remember […]
What should you do in a falling market? So, what’s a stock market investor’s best response to dropping stock prices? First, forget about rationalizing and explaining (or listening to other people explain) why stocks are falling. It’s a pointless exercise at best, and misleading at worst. Second, file the painful experience away as a […]
It may sound very outlandish and out dated that I do not allow my clients to borrow for investing. In fact I have become very unpopular with some clients for this very reason. However I am against people borrowing against gold, against their properties (top-up loan), personal loans or even a leveraged application in the […]