Equity investors are most unlikely to be keen followers of bond markets. Even when their equity investments benefit greatly from events in the bond market, equity investors tend to not follow the interconnect closely. Bottom-up investing is a convenient excuse to say ” I don’t follow the economic macros”. I…
The cash call is the most difficult thing for an investor to take. To leave a party where the excitement soars endlessly is more than just difficult. It is impossible. To achieve the impossible, one has to rise above the ordinary. To sell when everybody else around you talks only of buying…
Diwali brings special cheer to the stock market. The deeper connect with the auspicious day, the opening of the new books by large sections of investors (though it has become more symbolic than anything else) and the association of the mahurat with good tidings make the day special to Indian…
What should you reward or recognize an advisor for? Poll investors and you will get an overwhelming verdict favoring returns. Most investors believe the only reason they need an advisor is to give them more returns which they dont have the time to find themselves. The advisor is meant only…
We have been bombarded over the past few weeks by the billion-dollar sale days from e-commerce sites of all hues. We were induced by these sales into buying even what we don’t need. And, people were so enticed by the discounts that they were willing to buy more than they…
Investors see the same news, read the same newspapers, look up to the same icons and respect the same blue chips. The markets present the same opportunity to all investors. Information is freely available to all investors. Yet, why do just a small minority get it right while the masses…
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…