When all of us feel that there is no risk, risk happens. Like all of us were sure that the markets will go from 21000 to 25000 it went to 9000. Market is a great humiliator -and exactly when you feel you have understood it all, it slaps you. At times it hits you in […]
The US being downgraded from AAA to AA+ is being touted as a huge and big event impacting the world economy. It is exactly like a cancer patient in ICU dying. Yes if he is a relative, the eyes do get moist. If he is very close, you might even feel devastated. However the day […]
Indiainfoline Investment is coming out with a debenture of 5 years duration – at an attractive rate of 11.9%p.a. The short question is ‘Should you invest in these debentures?’ Well the Shriram group (Chennai based) is coming out with a debenture at a coupon rate of 12.3% p.a. in about a weeks time. So should […]
Ever wondered what is Market Stabilisation Scheme? In 2002-4 the Rupee started strengthening. This was because of the amount of foreign currency that came into India for being invested. This put a lot of pressure on the Rupee – and the strengthening hurt the exporters (remember the great software industry which did not tell you […]
There is only ONE reason why people get into debt. Living beyond their means. Make no mistake there is just one reason. However when people get into debt, and when they come to me, they justify on various grounds…I have very little sympathy -Satyam is never Sundaram, but always SHIVAM!! What are the main reasons […]
Financial markets do what all markets do – price discovery. Fish markets find the price of fish, gold markets the price of gold, job markets determine your salary. The price of money means the financial markets mobilize savings into investments – and channel them for various uses. It determines the prices of bonds, equities, warrants, […]
Caveat Emptor. I do not understand interest rates. To be more precise, do not understand interest rates at all. Many people in the floating rate model of interest for housing may not know that they are already paying north of 14.5% p.a. interest on their loans. Ouch. It hurts. For new buyers of big houses […]