Sharing some one liner sales pitches that became famous on Wall Street and people should really avoid them & most of them used by many advisory firms and they have embraced a culture of sales and monthly quotas. If you find these pitches be afraid it’s a caveat…..
- “It’s like a CD.”
- “Buying on margin will greatly increase your returns.”
- “This fund did really well last year.”
- “As long as the music is playing, you have to get up and dance.”
- “Do you want the confirmation sent to your office or your mansion?” View full article »
The single greatest mistake investors make is to extrapolate recent history out into the future. They take the financial returns of the past 5 days or 5 years or even 50 years and assume the next few days or years will look just the same without any consideration for the historical context or conditions that provided for those returns.
They forget that, while ‘history may rhyme, it doesn’t repeat itself’ (Twain). Or that, “the only thing that is constant is change” (Heraclitus). These two famous quotes apply to the financial markets as much as anything.
Ignoring these truths and instead simply extrapolating is why investors are suckered into pouring money into the stock market only after a run of great performance. View full article »
As I did a story few days back When to sell and When to buy ? Trying to recollect the some book rules for Investments that holds true in many adverse scenarios.
As all of you must be aware of that the field of behavioral finance has helped us to understand that we don’t always make rational investment decisions.We often make poor decisions because of our biases. And the designers of structured product are well aware of these “flaws” in investor behaviour. So they structure products that exploit our flaws. View full article »
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. In the world of securities, courage becomes the supreme virtue after adequate knowledge and a tested judgment are at hand. -Ben Graham
There are plenty of folks out there that want you to believe that there’s only one way to make money in the markets (and they’re only too happy to show you how). This is just not true. I truly believe that there are as many ways to make money in the markets as there are unique human beings on the planet.
One thing I hear more and more, especially on social media, is that when it comes to investing, “one size fits all.” View full article »
Well it’s a financial blog. Why valentine day love post?? You can’t ignore love, have been trying to mix the economic functions that can be calibrated with love. I will not go on the personal finance or behavioral finance side but the lure for the occasion provides some liners:-
· You’re my long-run target; my nominal anchor.
· I’m going to extraordinary measures to increase your stimulus.
· I long for you as the economy longs for its long-run maximum potential
· Her deviations are never standard, her probabilities never mean. View full article »