While doing a risk review of a portfolio, I stumbled on a portfolio with 55 mutual fund schemes and 52 direct equity investments. When the investor asked me what was the risk, I said there was ‘concentration’ risk. I also told him he was running the risk of ‘over-diversification’ . He asked me to speak […]
This is not a debate on whether you will live long or not live long. It is simple and easier to assume that you will live long – pretty long if you ask me. If your grand parents are pushing 85, your father is in his 2nd innings, but still holding a job at the […]
Many people have been asking me this question. I thought I will wear the hat of an investment advisor in US and look at the world markets and see what to do. So here it is. Not too useful I am sure, but here it is: 1. All Central Banks are printing notes – so […]
The cheer leaders are screaming once again – welcoming the 10,000 index. Whether it is television, print, or the internet – all of them have headlined the great reclaiming of the 10k index. The typical middle class guy is happy, but of course skeptical. The questions he is asking are the following: Will this market […]
Why is it that in the case of Satyam and in the world wide mess it is largely the equity shareholder who is losing? Welcome to the world of moral hazard. When you lend money to a bank (which may be insolvent even as you are lending) or to a country (which technically cannot become […]
continuing the myth busting on rent vs. buy …. “Renting is for poor people.” Of course renting is for poor people – very much true. But it’s for rich people, too. I know if I name some of the people who live in rented houses – with their designations some of you might torch me. […]
These days it has become fashionable to do articles on “investment myth busting”. Since I cannot claim to have started this myth, I need not end it either. Let us examine them slowly (One is what we can handle in one day) Myth 1: Stock market investments will always outperform bonds and fixed-return avenues in […]