If you read magazines, newspapers, etc. or watch the business channels you would have been convinced that people chase performance. Constantly ‘experts’ come on television and print media and say ‘people’ should not chase past performance. Actually articles and programs encourage people to churn or chase performance.
Do you know what a rating does? It rates [...]
October 23rd, 2009 | Posted in Mutual funds | 3 Comments
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 they [...]
August 18th, 2009 | Posted in equity | 1 Comment
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. Risk [...]
July 31st, 2009 | Posted in Investment Myths, Uncategorized, financial education | No Comments
Copying is very difficult especially if you want to be the first! How can you copy from the second best and be first? So that makes copying difficult. However you could take parts of many and look original…then you need not defend your copying!
Warren Buffet made most of his money by staying and investing in [...]
April 29th, 2009 | Posted in equity | No Comments
The trust that we all have on big organisations is dwindling if not reduced to zero. I have shares in 2 groups where I have some contacts with the promoters, top executives, mid level executives and some operational people. The reaction of each of these people to the slow down and the recovery process is [...]
April 15th, 2009 | Posted in Uncategorized | 1 Comment
The cheer leaders are screaming once again – welcoming the 10,000 index. Whether it is television, print, or the internet – all of them have headlined the great reclaiming of the 10k index.
The typical middle class guy is happy, but of course skeptical. The questions he is asking are the following:
Will this market rally last?
Does [...]
April 8th, 2009 | Posted in Personal Finance, equity | 1 Comment
I did an unscientific sms poll asking people the same question: ” 5 year view – If I have money to invest in the equity markets. Should I do a 12 month STP or a 24 month STP?”. The persons covered included 2 CIOs, 2 CEOs a few fund managers, 3-4 research people and a [...]
March 16th, 2009 | Posted in Uncategorized, equity | 1 Comment
http://www.subramoney.com/book-written-by-me/
I am sure all of you know the cap seller and the monkey story. So why am I telling you the same story again? No this is not the same story, it has a twist.
A capseller was looking for a place to rest in a forest. He found a nice big tree and decided to [...]
February 12th, 2009 | Posted in Credit and borrowing, India, equity | 1 Comment
This article first appeared on the utvi.com web site – written by the famous anchor, Mr. Vikram Oza. It kind of explains the relationship between risk and return.
The stock markets are risky business. At least that’s the line most people who didn’t park their money in Dalal Street have maintained. But on the flip [...]
November 6th, 2008 | Posted in Personal Finance | No Comments
We are in the midst of an economic slowdown for sure. The west is down to growth rates of 0 and 1% per annum. Dropping oil prices will mean Sovereign Funds will have lesser monies to spend, and IT companies will also bring in lesser revenues.
When the going gets tough, the tough go shopping! So [...]
October 26th, 2008 | Posted in Personal Finance | 1 Comment