Back from the long Diwali holidays, time to reboot on the markets, long breaks are always good to revive and get some thoughts from your near and dear ones.
On the way back from Bhopal to Mumbai, some fellow passengers were curious about the markets and the train was late as much as 6 hours. It was a holiday special train and passengers paid a premium to board the train compare to other routine trains, they expect the train to come on time as the fare is higher. I did exchange few tweets with the railways department for delayed train.
Getting back to the theory as the fellow stranger passengers did not have a good time with markets as well, most of them were trying to time the market. Continue reading “Rebooting from the Risk – Return and Disappointment theory”
Self-deception is costly when it comes to investing. So let’s consider some of the lies that a lot of us may be telling ourselves and the impact they may have on our 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.
Here are some hilarious thoughts when you say and what does it actually mean:
1) That’s overbought (I’m not long and think buyers are stupid)
2) That’s oversold (I’m long and think sellers are stupid) Continue reading “Market Forecasting and Convictions”
Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. The very purpose of this disclaimer is to meet the statutory requirements. Only very few people would have heard it when it is mentioned in the radio or television as it flashes by at lightning speed. In print media (Newspaper, Magazines) it is published in extremely small font. Only investors who know the statutory requirements would even be aware of the statement because the advertisements, with ‘namesake’ disclaimers, are hardly educative.
So, what is the mystery behind the ‘flash’ statement? The statement means that mutual fund scheme invests the money collected from investors in instruments which are subject to market risk. Every investor of a MF should read the offer document carefully before they invest their money with the fund house. Continue reading “Mutual Funds – Reading between the lines”
In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last post in 2013 on Feb 14th was a kind of open proposal expression through the priceless charts Love you by Finance Market Professional : Valentine day! , also today my blog turned-up 6 years old, and my first ever post was on the Mergers and Acquisitions in India! and the government policies .
Getting back to the topic for today A few years ago, somebody asking this question on market timings would have been dismissed as a nit-picking nerd, but today that question has become extremely important. Last week, the Wall Street Journal’s Money Beat blog ! carried an interesting story about how this difference cost a trader $100,000. Continue reading “At What Time the Market closes 4:00:00 PM or 4:00:01 PM”
SimCorp Survey -released the findings of a poll conducted in March. Respondents included nearly 60 executives from 34 capital market firms from around the world.Results show that 53% of capital markets respondents are not ready to centrally clear interest rate and credit default swaps.
With regulations like Dodd-Frank and EMIR aiming to increase transparency and market efficiency in over-the-counter (OTC) derivatives trading, the poll asked respondents whether or not their firms are ready to centrally clear interest rate swaps (IRS) and credit default swaps (CDS). While 41% answered yes, a 53% majority answered no. Continue reading “The Capital Markets are not ready for Central Clearing”