Understanding mean, median, mode, standard deviation, regression, reversion to the mean – is a pre-requisite to understand financial markets. Let us see some simple examples: It rained 90mm in Mumbai on 22nd July. If it rains like this for 6 months continuously, Mumbai will be drowned. It was 43* C in Lucknow on 23rd May. […]
I have a brilliant friend who has worked for many big and important media houses. He told me once – when he was heading a magazine – “I have made up my mind, please do not confuse me with the facts!”. This was when he was doing a story on mutual funds and unit linked […]
A pyt in our office today asked a very innocent question. If inflation has gone up from 9% to 11% in a week, next week will it be 14%? Well the truth is I do not know. However I do know that if it rains 90mm in Mumbai, and it does rain like that for […]