BSE has around 4000+ stocks listed but actually traded would be in range of 1000 stocks and NSE has around 1600 and again actively traded would be close to 100.
There are some dangerous stocks that should not be traded for various reasons as there is no liquidity in them, or they are prone to get delist and there are other reasons as well that might be interesting to read. You may not heard their name as well,
Kappac Pharma: Company with Chronic disease/Pharma name is deceptive and misleading.
Vikas Globalone : Kiska Vikas ? And nothing Global.
Cressanda Solutions: What Solutions? Providing solutions for black money conversion? Continue reading “Junk Stocks of Indian exchanges”
As the Year end approaches people start inquiring about the tax saving plans and want to invest their money now to save tax. I have been approached by many of my friends and colleagues, they want to do everything now SIP, ELSS, Insurance?
Can you do financial planning in adhoc mode? For me it’s a big no. People end up buying either the most misssold ULIPS or may be some insurance plan.
The Term Financial planning is mis-directed, mis-guided and mis-selling lead to many such situations. I always encourage SIP between my fellow mates, whosoever asks me to invest the savings.
Systematic Investment Plan is an approach to investing within Continue reading “Systematic Investment Plan: SIP”
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. Continue reading “Higher the risk Higher the return”
International Swaps and Derivatives Association is the body corporate to make over the counter (OTC) derivatives market safe and efficient.
It has 815 members from 58 countries including global, international and regional banks, asset managers, energy and commodities firms, government and supranational entities, insurers and diversified financial institutions, corporations, law firms, exchanges, clearinghouse and other service providers.
The Key areas of ISDA are
* Reducing counterparty risk
* Increasing the Transparency
* Improve the OTC operational infrastructure.
The details are provided on the ISDA Brochure
ISDA came under criticism in 2012 on its decision that based on evidence the Greek bailout would not prompt payments on the (CDS) credit default swaps.
Continue reading “Why ISDA came under criticism on GREECE during the European Crisis”
Zero Hedge is one of my favorite blog on the risk analysis and for the global events, the blog argues that we are living in the Golden Age of Central Bankers, and that wreaks havoc on the fundamental nature of market expectations data.
- The VIX (Volatility Index) is not a reliable measure of market complacency.
- The wisdom of crowds is non-existent.
- Fundamental risk/reward calculations for directional exposure to any security are problematic on anything other than a VERY long time horizon.
- I’d rather be reactive and right in my portfolio than proactive and wrong.
The Golden Age of the Central Banker is a time for survivors, not heroes. And that’s the real moral of this story.
Let’s dig deep to understand the most basic question in risk management. Continue reading “Risk Analysis – Central banks and Volatility”