Greed is good !! well that’s the tag line on the wall street but how much that is more dependent on your emotion.In the past I did some stories on it and here is great work by Edward zones on the human emotions and market cycle..
- Lesson #1 Government agencies allocate capital better than the private sector
- Lesson #2 Central banks should control asset prices and prevent them from falling
- Lesson #3 Darwin & Schumpeter were wrong, creationists are right; there is such a thing as a free lunch
- Lesson #4 Towards a new orthopraxy
- Lesson #5 Wondrous tools used by the clergy to grow GDP
- Lesson #6 How to finance infinite needs
Markets are said to be efficient if the market price is an unbiased estimate of the true value of the investment. It means that a market that is over pricing all assets has become inefficient. Market efficiency can go up or down from time to time. An efficient capital market has the following features:
- Operational efficiency– low transaction cost and transaction should be quickly completed.
- Pricing efficiency: prices should fully and fairly reflect all information.
- Allocational efficiency: capital market through the medium of pricing efficiency allocates the funds where they are best used.
There are three different levels or forms of efficiency. Continue reading “Market Efficiency”
I wish all my readers a very Happy and Safe Holi !! Keep it dry !!
Thought of sharing a small basic concept of Market integration .
Financial markets are said to be integrated if assets of similar maturity give the same the risk– adjusted returns in various segments of the markets. Financial markets all over the world have witnessed growing integration, within as well as across boundaries. Continue reading “Market Integration”
There has been a lot of negative comment about the Cyprus deal. That is understandable: you can reasonably argue that it will produce crippling austerity; that it is ridden with moral hazard; that it will create a bank run across most of Southern Europe. But what you can’t argue is that it was unexpected.
Too understand the deal in-case If you are in Cyprus :
* You can put money into your bank, but you can’t get it out again. At least you can, through ATMs, but only in very small amounts.
* If you have money on deposit, you can’t take the money out and close the account. And if it’s a time deposit, when it reaches the end of its life, you can’t have the money to spend. You have to roll it over into a new deposit. Continue reading “Cyprus Reaction”