Just wondering what advise would the American investors be getting from their advisers? Well they must be saying: – US has been downgraded, but our government is still able to borrow at rates at their lowest rates in the past 60 years. – US is growing at a rate better than all the others in [...]
It is funny how many people want to get returns far (the operating word is far) greater than the index! Over a 54 year period my father has got a return greater than 14% p.a. in Hindalco. This is not good, it is great. The two important things are ‘r’ the rate of return and [...]
I had done the following post in the 1st week of June, 2006. Except for the numbers, the story is just as fine. It originally appeared in the Personal finance section of moneycontrol.com Okay, so the market fell 1,100 points on 22 May 2006, it fell 350 points on 31 May 2006 and another 327 [...]
I had done this piece for rediff in 2006. It is relevant today also read on… The most important animal in the markets is the pig. It gets slaughtered whether the bulls have a party or the bears have a party. That pig is your lay investor. I am not a doomsday specialist or a [...]
One professor of a college wrote into a leading personal finance magazine: “I do not agree with you…Equity is not a great investment. The Sensex started in 1978 at a base of 100 and in 2007 reached 20,700. This means 207%. Now this means it has given a CAGR (think compounding!) of 6.9%. We could [...]
For regular readers of my blog this is the nth time that investors who do not have a goal find it difficult to handle volatility in the markets. If your daughter is 5 years old and you are saving for her education or wedding, how does it matter whether the markets touch 21000 or not? [...]