Real estate broker: Your house is the best asset that you can expect to create in your life. You can expect it to appreciate well over the long run. What to do: Your home will not appreciate. It is not a wealth creating asset. It will not make you rich. Remember it is an important [...]
Most financial planners and personal portfolio managers are questioning their basic assumption of asset allocation. In the year 2008 asset allocation failed. This of course is their conclusion based on a set of data. Data is accurate but the conclusion seems to be a little flawed. In the years from 2002 to 2007 (when Mr. [...]
Gallup had done a poll in US to find out the attitude towards retirement. Here is what they have to report: “A majority of non-retired Americans now doubt they will have enough money to live comfortably once they retire, representing an 18-point drop from just five years ago. According to the Gallup’s annual Economy and [...]
It is so funny to see politicians and some fund managers say India’s interest rates are very high in real terms (if inflation is 3% and interest rates are 10% reeal rate of interest is 7%). So interest rates should come down. Also if the $ is now at 52 or 53 to a rupee, [...]
I have answered this question millions of times in my training and teaching sessions. And there are no clear answers. However students who ask this question need to understand that being ethical may be an end in itself. If something is an end in itself, how does it matter whether it should be done or [...]
The markets – capital markets especially is a great teacher. However, the characteristics of this teacher are unique: 1. Takes the fee upfront 2. Lessons are taught the hard way, but students do not remember it long enough 3. Never negotiates fees – the dumber the student the higher the fee, and no mercy is [...]