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 [...]
There are many reasons to buy Gold and hold it. Of course tomorrow I can give you many reasons NOT to own gold also. One reason NOT to own gold is the recent phenomenon in its price. For example if you had invested in gold in 1980 (US $ 590) today it would be worth [...]
Thanks to the fact that I write and also run a blog, I get a lot of questions expecting ‘Yes’, ‘No’. Invest in ‘Hdfc Growth fund’, or ‘do not touch unit linked plans’ kind of answers. This to me is difficult. Even when people ask me “What do you think of Tata Steel?” (Ok when [...]
Well frankly I do not know whether it is a good time to invest in gold or a great time to get out of gold. But let us look at the obvious reasons to buy or sell. Obvious reasons to buy: 1. The world is busy printing money so value of currencies will fall but [...]
There are many signals which are likely to confuse you about bear markets and bull markets. Unfortunately the market does not ‘pre-announce’ the start and stop of ‘bull’ and ‘bear’ markets. You need to look at signals – monetary, philosophical, psychology, and physiological! You could look at how people behave, what they say and what [...]
One very important fallacy is called the ‘Sunk cost fallacy’ – which makes us throw more good money after money already gone bad. Typically a lender keeps lending money to one customer hoping that this will enable the borrower to do well and repay ALL the money. Another manifestation of this is called ‘Averaging’ – [...]