Nice to see many many many articles, blogs, even legislation which are meant to ‘help’ the uninformed, poor investor. Let us look at the assumption of what these intellectuals and bureaucrats think about the behavior of the end investor: 1. The investor is rational: Fair assumption based on the Economics that they have been taught […]
I do not know much about the other industries, but the financial services industry has a lot of interesting behaviour… The life insurance industry had a product called Classic Endowment Policy. This was a compulsory saving and risk cover product where the returns were a function of how well the fund was managed, how the […]
Do I have to tell you where I heard this advice? ….so here it is: 1. If you are not confident, keep your money in cash: ‘Cash is king’ goes the argument. My take: If cash is king what is inflation? I think sitting on cash till the market improves is an amazingly stupid piece […]
So sad we do not have a Dalbar (an US based research firm that compares returns of stock and bond markets with those of individual investors) research on Indian investor returns! Just released in the US it has 2 startling facts: Over the last 20 year period the Standard& Poor Index returned an annualized gain […]
It is so funny that when markets are rising, everybody asks you to buy, and when it is falling everybody asks you to sell! One commentator who unabashedly acused another big investor of “luring” the poor investor into the market (when the index was 7000), then changed his mind to predict 25000, then changed […]
Continuing with my Saturday’s blog…Reliance did list at a discount to the “perception price” of Rs. 450 + a premium of Rs. 150-160. It tanked to 390 and then zoomed past 430! So the poor investor who is stuck with the share procured at 430 does not know what to do? I have had people […]