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.
The way the mid and small caps in the Indian markets are trading gets to sense the equity markets are either at the start of a bull run breaking out higher or are on the verge of a break down lower.
Just correlate with layers 2007 and early 2008
- Sub Prime issue was lingering in the mouths of traders for three years before the pain struck. Now, Greece is lingering for five years. Markets did not price in the Sub Prime issue. Now markets have under-priced Greece exit.
- When the major markets peaked and languishing in ranges we have seen for about three months a surge in Indian equities (along with mid and small peaking to astronomical levels) then eventually Indian equities crashed.
The most generic question that I have found among the first time investors is how to select the Mutual fund, which fund to invest . Here are some tips that might help you .I do not write much on personal finance, and I doubt how many investors have the visibility on these 7 factors to invest in the mutual funds.
Seven Factors To Consider:
- Management Stability: If you find a great manager, hang on to them. Top managers usually continue to perform better in up and down markets, because they have the stability and experience to stay focused on their objective.Let them work for you and enjoy the stability.
- Management Participation: The management team of a great mutual fund usually invests heavily in their own fund. Continue reading “How to select a Mutual Fund:”
In the recent past the financial media has glamorize the Free fall of the rupee and its been showcased as mere panic to the viewers, one of the major reason you should better be watching National geographic channel or Discovery.
Here are some thoughts on the financial development of India
We have reversed financial development, we have messed up the operating procedure of monetary policy, we have created chaos in the short end of the bond market, we have impeded Indian households taking refuge from high inflation by purchasing gold, we have resurrected gold smuggling, we have raised the possibility of reversing trade reforms. In return for what?
There are numerous problems that require the attention of the government. :- Continue reading “The Rupee Vs Dollar the battle we have chosen”
The rupee is getting weaker against the dollar and RBI did intervene in the market, Perhaps a better gauge would the tanking of the $INR from 54 to 61. I would attribute the wealth lost in that fall entirely to UPA & Pranab Da.
It is not end of the world or the INR. Just a part of the process by which markets discover price & force policy makers 2 revert 2 virtue.RBI should note that those Industrialists crying about the $INR are precisely those who add no local value but enjoy a protected market.
In the mean time just thought of sharing some basics from RBI : – Continue reading “How well you know about Money RBI : Central bank Termonologies”
Over the past few weeks, the economy of India has been in focus because of various factors such as decline in INR, slowdown in industrial production, etc. We keep reading a lot of articles that suggest that the policies of current government are responsible for this state of affairs.
A.Seshan in Businessline points to this known but seldom reported trend ongoing in India – inverted yield curve in G-sec markets:
A typical yield curve should be upward sloping indicating that the higher returns/rates/yields should be provided for taking higher risks which are generally over the long term. Similarly, lower returns/rates/yields should be for lower risks which are generally short term. In short, longer the time frame, higher should be the rate/yield that you should earn. Continue reading “The Inverted Yield Curve – India”