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Tag Archive: happy valentine


First off, I have no idea what is the going to happen on Monday when the market opens.  The market may open ugly. IMG-20160214-WA0003Some sort of corrective action in the market should not come as a huge shock.

Every valid investment strategy goes through periods of under-performance (relative), or draw-downs (absolute). The question is how you deal with it. One key characteristic of frustrated investors is that they jump from strategy to strategy. The first sign of weakness forces these weak hands to jump ship at just the wrong time. In short, following a strategy is easier said than done.

Ben Carlson at A Wealth of Common Sense also notes how our fear of losses, or loss aversion, affects our ability to invest successfully. He writes:

Crashes, corrections, draw-downs, losses, system resets or whatever you want to call them are a feature of the financial markets, not a sign that they are broken. These things have to happen every once in a while for the system to function Continue reading

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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 heart-512x512 blogcalibrated 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.  Continue reading

In the past years my posts on 14th February some way or the other have been in conversations between Love and Finance, my last blogpost 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

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