History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They buy at high prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.
This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.” View full article »
Continuing from the last post on predicting the market from: the words by John Templeton “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
You can’t wait to time or predict the market, today is the best time to start investing if you have cash. Cash is a strategic asset.
The sense of pessimism is prevailing all over. Generally speaking the lifespan of investment remain for 30-40 years and to get the opportunity window for investment is bit difficult. Analyzing the Sensex in the last 20 years there has been 3-4 opportunity windows. View full article »
Generally I do not write or analyse on the market predictions. But one of the friend shared a msg on Nifty predictions let’s try to analyse it.
Don’t confuse brains with a bull market….. How much Nifty can rise in current bull market….?
Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria
– Sir John Templeton
India has first major Bull market when Sensex moved from 400 in 1989 to 4546 in April 1992 a Rally of almost 1100% in matter of 3 years which will be remembered for Liberalization and reforms by Manmohan Singh . View full article »
Taken from the Big chill of 1983:
Michael: I don’t know anyone who could get through the day without two or three juicy rationalizations. They’re more important than sex.
Sam: Ah, come on. Nothing’s more important than sex.
Michael: Oh yeah? Ever gone a week without a rationalization?
Self-deception is especially costly when it comes to investing. So let’s consider some of the lies that a lot of you may be telling yourselves and the impact they may have on your portfolios.
- You know what your investment returns are. You would be surprised at how few people actually know what their returns are. Even fewer understand their performance relative to a benchmark. It is not that complicated to correct this. Set up a simple spread sheet using Microsoft Excel or Google Drive or one of the available online tools. View full article »