MICROFINANCE – IS THIS A MACRO OPPORTUNITY?

(Cartoonist: James Whitworth: Cartoonstock.com) I had fleetingly mentioned microfinance as a demographic opportunity in one of the earlier posts. I felt it might be in order to elaborate.   What is Microfinance?   The origin and history of microfinance is actually from Bangladesh. In 1974 Muhammad Yunus, a Bangladeshi economics professor loaned $27 to 42 impoverished women. These women were making bamboo stools. It seems that these women were being paid a pittance. They had to depend on credit provided […]

DEMOGRAPHICS – MIND THE (EXPECTATIONS) GAP

(Source: Cartoonresource: Shutterstock)   Demographics is one of the 3D’s in the hurricane of economic growth. The other two are, debt and deficits. How can India be considered to be a country which has a demographic dividend? I have tried to highlight the reasons.   What is demographics?   Demographics is the quantifiable study of a given population. The main themes used are gender, languages, age and ethnicity of the population. With India’s burgeoning population and its diversity on all […]

ARE WOMEN BETTER AT THE INVESTING GAME?

  (Cartoonist : Dave Whamond : Cartoonstock.com) Investing and temperament go hand in hand with each other. All great investors are blessed with a great temperament. The dictionary meaning of the word temperament is ‘the combination of mental, physical and emotional traits of a person’. The legendary Warren Buffet has said that the most important quality for an investor is temperament and not intellect. He goes on to say that in investing, once you have ordinary intelligence, you need the […]

HOW TO PROFIT FROM INSIDER TRADES

(Cartoonist : Chris Wildt  : Cartoonstock.com)   An insider trade can emanate from information, liquidity or manipulation. Hopefully, this post can provide some clues as to how to devise ones own strategy for imitating insider trades profitably.   What is insider trading?   The SEBI regulations on insider trading talks of ‘connected persons’ who have ‘access to unpublished price sensitive information’. It is impossible to understand what constitutes an insider trade without considering what the regulation say. However, I will not […]

ARE LOWER OIL PRICES GOOD FOR THE NIFTY?

  (Cartoonist: Mike Baldwin: Cartoonstock.com)   Nifty and Oil   For the purposes of this post, I have assumed that U S $ 83 or thereabouts, is the ‘new normal’ for oil prices, and for the INR it is 62. The media reports are full of stories about how the fall in oil prices is a blessing in disguise for India. India’s politicians and central bankers are also happy about the downturn. Lower oil prices help shrink India’s current account deficit. They […]

INFY PRICE TARGET – 4639 ????

(Cartoonist: Bacall, Aaron : Cartoonstock.com)   We are back to the earnings season. INFY, the IT bellwether announced numbers on Friday, 10th Oct, 2014.  The stock had declined for most of the week on the back of ‘sell’ recommendations by some FII brokers. On Friday it recovered all its weekly losses, and then some. Since the market gave its price a nice bump, I assume the numbers and guidance must have been encouraging.   The INFY Price Target   How […]

FOREX FALLACIES - THE DOLLAR INDEX (DXY)

FOREX FALLACIES – THE DOLLAR INDEX (DXY)

(Cartoonist : Farris, Joseph : Cartoonstock.com)   For this weeks blog post, I delved into the fascinating world of Currency Markets. The most succinct way of presenting a very intriguing topic, I thought, would be to pen a list of Frequently Asked Questions ((FAQ) on the U S Dollar Index (DXY).   FAQ on DXY   1. What are Foreign Exchange (Forex) or currency markets? The Forex markets are huge. Every day, more currency and currency instruments trade hands, than […]

LEI – THE MAGIC INDICATOR

    (Source: Cartoonresource/Shutterstock)   One of the very valid criticisms about research and stock predictions, is that it is made on the basis of past and historical data. This data cannot be said to be predictive. The Leading Economic Index published by the Conference Board, on a monthly basis, is a futuristic indicator. I have mentioned it, fleetingly, in the past (you can read about it here). The Conference Board   Acknowledgements : I wish to thank the Board and their […]

IS IT EASY TO MAKE MONEY IN BULL MARKETS?

ARE YOU PREPARED FOR A MARKET CORRECTION?

(Source : Cartoonresource/Shutterstock) With the bull market setting new high’s every week, it might seem preposterous to prepare for a correction. However, it does pay to be forewarned since, ‘to be forewarned is to be forearmed’. Historical FII ‘flows’ in Q4. The Indian market is heavily dependent on FII (Foreign Institutional Investor)  ‘flows’. Any downturn in the market, has, more often than not, come on the back of FII selling. Is there a trend in the FII ‘flows’? I did a […]

THE ART OF SELLING STOCKS

  (Source : Cartoonresource/Shutterstock) There are, broadly, two types of sales. The first one is a specific stock sale and the second one is a sell on the market. The contents of this post should not be construed to mean I am suggesting a sell on the market. Yes, some stocks in my opinion are worthy of being sold. Which ones? Maybe you can use the contents of this post to find out more about that.   Selling Is an Art, […]