Inflation story continued……… Psychological Impact of inflation is quite harsh on the investors and savers. Economic theory says when inflation is high, people will tend to spend more – because there is no incentive to save. This is true to a very limited extent. Most people get so scared that they start saving more and […]
The cheer leaders are screaming once again – welcoming the 10,000 index. Whether it is television, print, or the internet – all of them have headlined the great reclaiming of the 10k index. The typical middle class guy is happy, but of course skeptical. The questions he is asking are the following: Will this market […]
Recession, slow down, pessimism about the Indian economy (of course because of the recession in the U.S. economy) are words that become common place in local lingo! Everybody and his aunty is now convinced that the Sensex will touch 5000 very soon, and the last place to be investing now is the equity markets. […]
To provide liquidity to the markets, the FED, the European authorities, along with their Asian counterparts have decided to swamp the banks with money. However, this is likely to come with strings (ropes?) attached. No money comes free – immaterial of whether it is called Debt or Equity. The authorities have put a lot of […]
This appeared under my byline in reuters india in their personal finance section I have a difficult time explaining to editors in their 20s why there is a gap between what I say in my columns, what I do and what others do. The origins of this article can be traced to a meet with […]
Many of my clients have a problem which they think is unique. This problem is called “Anchoring”. It means you have heard (or seen) about transactions which have happened at a particular price, then they expect that price for their real estate. Let me explain. I have an office space in Mumbai bought for Rs. […]