Pundits who Predict & why we shouldn’t listen to them.

Everyday when we open the business news channel we are faced with the news reporter who says why the world will be great place or a lousy place due to some happening in some part of the world. In the business context we also believe these will impact the stock markets positively or negatively. Numerous studies involving experts and novices who made short term predictions, have proven that the experts are no better than random novices in getting the odds of their predictions play out. Yet we attach the greatest importance to their predictions in the short term. Harvard Economist John Kenneth Galbraith says “there are only two types of forecasters; those who don’t know, and those who don’t

All that Glitters is Gold

Gold has had an extraordinary year in 2020, going up by almost 20% in value terms. The reasons for this stupendous rise can be analysed in the following context : Global : COVID 19: The Pandemic has unleashed enormous uncertainty with respect to life and businesses globally. It is quite evident that many businesses may not survive the COVID 19 and we will find ourselves in the new world even after this threat has passed. All this leaves people with uncertainty and in uncertain times, GOLD has always been the safe haven for investors as was evident in the financial crisis a decade ago or even after the 9/11 Bombing of twin towers. So Gold as an investment of choice in uncertain times is one

Herd Mentality

If a million people do something, it must be right ? This is called social proof wherein we go by herd thinking rather than apply our mind to arrive at our own conclusion. It is a lazy way of making our decisions which can easily be rationalized as well. It is based on the belief that the more people who follow a particular process the more it is likely to be the right one. Is that true ? Let us examine. I had this experience.. some years ago there was a small banyan tree that was coming up near my house by the side of the main road. Over the period of time, somebody started going round that tree and some other person literally painted the tree with turmeric paste and started tying strings

Recency Bias aiding Banking & PSU Funds

Banking & PSU Funds is a class of Debt funds. Ideally these funds invest into Public Sector Bank bonds and PSU debentures or Bonds like Nabard, IRFC, NHAI, REC etc.. While these are not capital guaranteed investments, the fact that they are state owned means that there is an implicit guarantee that the underlying investments are principal protected. Banking & PSU funds have existed in the industry for well over 10 years now.. however it is only now that the industry is waking up to it.. Recency bias is the behavior trait wherein the recent events play an enormously large part in decision making as compared to events that may have occurred sometime back. For example, life/health insu

Portfolio review Via Negativa

“Via Negativa” is a negative term from the medieval times meaning through the path of negativity. The medieval thinkers/ theologians believed that while we cannot accurately say what god is ; we can quite easily say what god is not. This thinking can be applied to every sphere of life. The simple trick seems to suggest eliminate the downside, possible selection errors and the upside will take care of itself. When the pope wanted to know the secret of Michelangalo’s craft how he had flawlessly created the statue of David, Michelangalo’s reply was seemingly obvious ”I removed everything that was not David”. Again the aspect of removing the irrelevant to bring the greatest relevance. In

BHARATH BOND ETF - II

BHARATH BOND ETF - II Bharath Bond ETF II is the second series of Exchange Traded Funds ( ETF) with the underlying asset as a Bond issued by Public Sector Undertakings. These are AAA rated bonds issued by institutions like Rural Electrification Corporation (REC), Indian Railways Finance Corporation (IRFC),NABARD, Power Finance Corporation (PFC), Powergrid, National Highways Authority of India (NHAI). Investors have two options of two maturities ie five years maturing in April 2025, named as NIFTY Bharat Bond Index - April 2025 with a coupon 5.60 % per annum or 11 years maturing in April 2031, named as NIFTY Bharat Bond Index - April 2031 with a coupon 6.75 % per annum. Pros : 1.It is an a

Principles of a Long Drive.

Let us imagine, you are driving from Chennai to Bangalore, the distance is 350 kms, the roads are fabulous and the scenery is brilliant on the highway.. but to get to the highway you have to beat the city traffic which is slow, unpredictable, with lots of fits & stops and therefore it can sometimes be frustrating. Also, before you start such a journey, you check your vehicle for fuel, air pressure(tyres), Oil level, Air conditioning etc among the many. But once you get started, you look to your windscreen to make sure you are maneuvering the vehicle on the route to reach there. You also sometimes look to the rear view to ensure that the vehicles behind are at a safe distance especially wh

When there is no WIND, ROW your Boat!

It is amazing to see how much of interest there is in investing moneys when the Stock market is doing well and is trading at a premium. However ever since covid 19 struck, we have seen that the stock markets in India have corrected by almost 30 %... with that almost all of investors have either deferred their investments altogether or have stopped/ pruned their regular investing. Inspite of the markets being at a low, why does this happen ? Fear factor is on top of the investor's mind, as they have seen erosion in their portfolio values, so they fear that their current investments too would suffer the same fate ; With the Lockdown being extended, the economy suffers and therefore enterprise

Now You Can Blog from Everywhere!

We’ve made it quick and convenient for you to manage your blog from anywhere. In this blog post we’ll share the ways you can post to your Wix Blog. Blogging from Your Wix Blog Dashboard On the dashboard, you have everything you need to manage your blog in one place. You can create new posts, set categories and more. To head to your Dashboard, open the Wix Editor and click on Blog > Posts. Blogging from Your Published Site Did you know that you can blog right from your published website? After you publish your site, go to your website’s URL and login with your Wix account. There you can write and edit posts, manage comments, pin posts and more! Just click on the 3 dot icon ( ⠇) to see all the

Design a Stunning Blog

When it comes to design, the Wix blog has everything you need to create beautiful posts that will grab your reader's attention. Check out our essential design features. Choose from 8 stunning layouts Your Wix Blog comes with 8 beautiful layouts. From your blog's settings, choose the layout that’s right for you. For example, a tiled layout is popular for helping visitors discover more posts that interest them. Or, choose a classic single column layout that lets readers scroll down and see your post topics one by one. Every layout comes with the latest social features built in. Readers can easily share posts on social networks like Facebook and Twitter and view how many people have liked a pos

Grow Your Blog Community

With Wix Blog, you’re not only sharing your voice with the world, you can also grow an active online community. That’s why the Wix blog comes with a built-in members area - so that readers can easily sign easily up to become members of your blog. What can members do? Members can follow each other, write and reply to comments and receive blog notifications. Each member gets their own personal profile page that they can customize. Tip: You can make any member of your blog a writer so they can write posts for your blog. Adding multiple writers is a great way to grow your content and keep it fresh and diversified. Here’s how to do it: Head to your Member’s Page Search for the member you want to

Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • LinkedIn Social Icon
  • Twitter Basic Square
  • Google+ Basic Square

© 2018 by Finsherpa Investment Services.  Privacy Policy