It’s simple really. Just change the time horizon so it suits your stance.
I’ve seen this play out over everyone’s favorite yellow metal the past few years. Gold is down almost 40% since it peaked in 2011. But it’s still up almost 350% since 2000. Although since 1980, on an inflation-adjusted basis, it’s basically flat. However, since the early-1970s it’s up over 7% per year (or about 3.4% after inflation).
See what I did there? There’s ammunition for both sides of the gold trade to use to their advantage. View full article »
Kotak Bank will buy ING Vysya bank in an all-stock transaction that gives ING Vysya shareholders 725 shares of Kotak Bank if they own 1000 shares of ING Vysya.
This will create a larger bank in assets; the new Kotak bank will be about 50% larger. However, the price increase in Kotak’s shares (to Rs. 1200) might have fully factored in the growth increase, without allowing for any issues in the merger going forward.
All ING Vysya branches and employees will become Kotak branches and employees” after the deal is completed,” the banks said in a statement yesterday. “Congratulations @udaykotak on a brilliant merger move. The enormous synergies are obvious,” industrialist Anand Mahindra tweeted after the deal was announced. View full article »
The risk/return trade-off could easily be called the “ability-to-sleep-at-night test.” While some people can handle the equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important.
In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some or even all of our original investment. View full article »
It’s always good to read some smart investors who did really well in the past. Here are some other lies that investors tell themselves on a consistent basis, including many I’ve told myself over the years:
If only I would have taken my own advice…
I’m not wrong, the market is. You’ll see.
Investing is easy.
I can predict when the next correction is coming.
I’ll be greedy when others are fearful.
I have an accurate discounted cash flow model that tells me exactly what this company is worth.
I know everything there is to know about the markets. View full article »
The most generic question that I have found among the first time investors is how to select the Mutual fund, which fund to invest . Here are some tips that might help you .I do not write much on personal finance, and I doubt how many investors have the visibility on these 7 factors to invest in the mutual funds.
Seven Factors To Consider:
- Management Stability: If you find a great manager, hang on to them. Top managers usually continue to perform better in up and down markets, because they have the stability and experience to stay focused on their objective.Let them work for you and enjoy the stability.
- Management Participation: The management team of a great mutual fund usually invests heavily in their own fund. View full article »