Bucket theory of portfolio management….i hope you have heard it. Instead of saying what it is, let me describe a case study – and you will understand it better! Mr. A is a retired person (retired means does not do any activity to earn money, and he is fully dependent on his portfolio for his […]
A finance ministry official says “If foreigners are allowed to invest directly in India, volatility will go down in Indian markets”. I am completely unable to understand this. Like I cannot understand what is wrong with Intra day or Intra month volatility! Markets have always been volatile – the question is how volatile that […]
Well, well you have to believe what the government tells you, right? No. Wrong. You need to see what is happening around you to guess what the growth rate can/ will be. 1. I spoke to a HR consultant she told me ‘Jobs paying more than Rs. 40 lakhs have just vanished. Recently when the […]
There are some basic rules for investors and more importantly for Retirees: 1. What you do not understand, is not worth knowing: If a financial planner tells you ‘Sir, you do not understand this, I will explain it to you’ – please be IMPOLITE and ask him to …….. (unprintable!). NOBODY (repeat NOBODY) is interested […]
Happy New year! Typically all magazines, news papers….channels will happily do a column saying ‘Investment Resolutions for 2012’…make some noise. Readers will happily read it, and tell themselves …’arre this year I will stick to my resolutions’ and then promptly forget it. Very easy for me also to do the same. Frankly I have […]
May your hair, your teeth, your face-lift, your abs and your stocks, mutual fund Nav, net worth, running speed, cycling cadence, RISE; and may your blood pressure, your triglycerides, your cholesterol, your white blood count, resting heart rate, insurance premium, and your mortgage interest FALL * * May you get a clean bill of health […]
The Sensex may have given 19% returns over 33 years, however it may not have given 19% in any particular year! This is fairly simple – the standard deviation is quite high, and good years are followed by bad years. Simple. In the year 2011 the sensex’s performance looks bad because of the poor […]