Stock markets love growth. When economies grow, the stock prices stay up. As much as markets love growth, the lack of growth gives the jitters to markets. The current worries in the developed markets in USA and Europe are centered around the lack of growth in their economies. Growth needs…
The news flows flowing out of Europe continue to worry. Everyone seems to fear the worst in Europe. The crisis seems to be spreading across Nations with little signs of any solution in sight. Just what is this crisis about ? When 27 countries joined to form the European…
Stock prices always discount future earnings. A company’s stock trades in multiples of its future earnings per share. This multiple which is referred to as the PE ratio is gradually coming down in the Indian stock markets. What we pay for future earnings is coming down. The PE multiple typically…
The Indian stock markets are clearly racing towards a bottom. The negative symptoms are quite overwhelming. Index heavy weights keep regularly hitting new lows. Money shifts from cyclicals to defensives. Retail money moves out of stocks into debt instruments. Stock broking houses are practically empty and activity is at a…
Investing is about making a profit. We invest money in something hoping to make money out of it. While we do make money out of many decisions, some decisions could go horribly wrong. For a variety of reasons, we could end up with an outcome that is hardly what we…
Big bazaar has captured the imagination of the hungry consuming class. If you are one of those who wants to buy large quantities of everything @ rock bottom rates , then the place to buy it is the Big Bazaar sale. The merits of buying there are cheaper unit…
The years of easy money may finally be coming to an end. Banks were lending freely and at lower rates for a long while. Now, they will have to tighten their purse strings. Why should they be doing so now ? Inflation has rendered it impossible to keep interest…
Nothing works for an investment portfolio like sensible bottom fishing. Bottom fishing in the stock market ensures that you pick great stocks easily at extremely attractive valuations. Bottom fishing ensures that you minimize or even eliminate the prospects of long term capital loss. And, when sentiment reverses significantly, bottom fishing…
Mr.Market has been selling through the first half of 2011. Nothing seems to restore his confidence in the market and recent events seem to suggest the possibility of further sell-offs in the near term. What are the factors that are weighing on Mr.Market’s mind ? And, how will these…
You have just finished doing 50 pushups and your trainer being ruthless orders another 50. Drenched in sweat and exhausted you don’t think you can do take one step further, leave alone do more push ups. But your trainer will not take “NO” for an answer. He keeps at it…
Picture an old-school person like your grandfather. Try and reminisce how he dealt with money. The money would be kept in a steel Safe-locker and he always knew exactly how much money he had in it. In the good Old days, bank deposits were the only investments for the middle…
We still want to own our own home but we don’t have the money needed. So, what do we do? Borrow from the bank or from our parents. And then, we spend our lives working, rather than toiling away trying to repay the dues. But then, is it worth having…