Greed has a unique character. It creates great outcomes and then destroys whatever it creates. So, we tend to see its creative potential when we apply it at the right time. We also cant escape viewing its destructive side when we get greedy at the wrong time. Yet, most investing…
In every crisis, there is an opportunity. But, how does an investor make use of it? Participating in an opportunity is the only way to benefit from a crisis. One needs to invest when there is panic all around him. But, it isn’t as simple as it seems. Most investors…
The concert season is a time when the herd mentality will be on full display. Everybody would want to attend the same concerts. Tickets for a few concerts would be at a premium. Scarcity would prevail. The names that draw the crowds will be very familiar, popular and widely discussed. A…
An investor’s mind is influenced by what gets in. Essentially, if he watches business TV all the time, his thinking will meander along with its flow. Given the shifty and short term orientation of Business news, he will also be driven by the immediate. Thinking beyond the immediate will be…
The investment activity of the average investor is inversely proportional to the level of fear in the market. When fear is low, investors are seen very actively making investments. And, when the markets are gripped with fear, the average investor takes to masterly inactivity. Even those with the best of…
Trading around an event is something our markets love. The budget is an annual event. But there are other lifetime events like VAT & GST which usually fuel great market interest. The passing of GST seems to have gone off rather softly. Markets didn’t show much impact the next morning. And, the coming…
Liquidity has the power to intoxicate. The combination of negative interest rates and liquidity is a potion whose impact we don’t know. There is no precedent of how it will work. This is the perfect setting to reimagine conventional economics. The top down club feels that it is inevitable for valuations…
Opportunity keeps knocking at an investors’ door. Investors with a keen ear are always quick to latch onto opportunity. The majority however mostly remain oblivious of opportunity and only realise it has passed by long after the event. Should the majority believe that the market’s attractive opportunities are not for them? Should…
Expectations can change much faster than we think. Consider this. In 2008, everybody who was a stock market participant genuinely believed their stocks could not go down. In 2009, nobody wanted to buy shares because there was consensus that stocks would go nowhere. In January 2016, nobody wanted to bet on stocks.…
There is no alternate to adhering to good economics. If sound economic practices are violated, the impact on societies will be profound. In such situations, societies will respond with alacrity. The message from Brexit is strong and loud for politicians and governments who underestimate the power of the people. The…