Animal Planet may well be the best channel to watch for investments! Surprised? Well, considering that investor behaviour resembles that of herds, it does not sound all that unreasonable. After all, in 2001 we found it hard to convince them that it was worthwhile to invest in equities. Now in 2008, it is hard to [...]
In falling markets the reason people are not able to sell is because of a disease known as “Anchoring”. It is necessary to note that the price as of today is a reality. If you get stuck to some old price which is in your head, you will end up not selling fast enough. Think [...]
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 [...]
If there were 22 business channels would you be depressed 22 times because the market fell yesterday? That is the question you have to ask yourself. The same bit of news played again and again can cause more panic for you than help you. Television ensures market volatility. A lot of buying and selling ensures [...]
Buy Morgan Stanley growth fund. Yes the same close ended mutual fund that people choose to hate. Let us look at the logic. MSGF a fund by Morgan stanley fund house is a good well rounded large cap fund. Whenever a fund house launches itself it starts with a large cap fund. So this close ended fund [...]
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 [...]