Retail investors are helping markets more by staying out than by investing in equities. So from a purely selfish point of view, we (current equity market participants) do not mind if you stay away from equities. Park your money in low-interest bearing savings accounts and this will help banks raise cheap funds.
Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 times respectively since December 2008.
Also, remember to pay all your EMI installments on time so that retail loans made by private banks do not get into trouble and we can continue do well owing their stocks. Continue reading “Why you should be in equities ? Some logical arguments”
No doubt that India is in the phase of bull run. The brokers calling you for more investment for securities, Mutual funds, debt, Insurance etc. I know people hate to visit the regulatory websites like SEBI, RBI, IRDA and make most of their decision based on the brokers advise.
Quick question before proceeding further how many ever read the prospectus before signing the document for investments.? I guess very few of them.
Sharing some bold points issued by SEBI for securities & Mutual funds at least this is minimum information the person should have before investing 🙂
For Securities : Continue reading “Bull run and the Brokers chase”
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.
Financial market integration can take place horizontally and / or vertically. In the horizontal integration, inter-linkages occur among domestic financial market segments, while vertical integration occurs between domestic markets and international / regional financial markets.
Continue reading “The Concept of Market Integration”
Peter Lynch work in the financial market cannot be ignored. Sharing some of his thoughts from famous book “Beating the Street” .
- When the operas outnumber the football games three to zero, you know there is something wrong with your life.
- Gentleman who prefers bonds don’t know what they are missing.
- Never invest in any idea you can’t illustrate with a crayon.
- You can’t see the future through a rear view mirror
- There’s no point paying Yo-Yo Ma to play a radio.
- As long as you’re picking a fund, you might as well pick a good one.
- The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
- When yield of a long term bonds exceed the dividend yield of the S&P 500 by 6 % or more sell your stock and buy bonds. Continue reading “Why Beating the Street was easy for Peter Lynch”
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..