When you are a 9 year old girl, your mother, elder sister, bhabhi, aunt everybody told you this: Do not talk to strangers Do not open the door of the house if you are alone. It does not matter who it is, just do not open. Do not talk to strangers even if it is […]
Let us look at some things which were heralded as a fantastic solution for a problem. Then we will see how these have NOW become problems and not a solution as it should have been. Insurance, Home loan, car loan, educational loan, derivatives, leverage, credit cards, ………….. Look at business Insurance. It is a brilliant […]
If I were Bill Gross, I would have done the same thing….When Bill Gross (the bond Guru?) took a stand that having a bull position in US Governement securities was not a sensible thing to do….I nodded.. He had a big portfolio of government bonds – about 250 billion US $! It is not […]
Here is a query that I got from a person whom I know from my blog….(I do not know her except through emails, but she is a very smart professional). Here is the query “Had a visitor from xyz securities yesterday. He wanted me to open a trading account offline.I have a broking account which […]
Well if you think your broker hid something from you….well you are partially hide! Also when your broker did not tell you that dealing in derivatives will lead to a quick death…well that is also partially true! The problem is Death Derivatives are something new – and both the above statements are not true for […]
Leveraging (like derivatives) is neither good nor bad. Huge wealth has been created by leveraging (Reliance, Tata, Uday Kotak (net worth Rs. 30 lakhs to market cap Rs. 26,000 crores in 25 years) – and also ALL bankruptcies have been caused by bad management of debt. There are many advantages of gearing or borrowing: a. […]
I have been a big proponent of financial education, but I hope you understand its limitations. Let me explain. Finance has changed over the past 100 years. In fact the changes in the past 10 years could perhaps be greater than the changes in the past 90 years before the last decade. Now if you […]