Archive for January 6, 2011

INVESTMENT OPTIONS IN THE NEW YEAR

Publication: Business Standard;   Date: Jan. 9, 2011       

Some simple strategies to keep your money working for you

Most asset classes, whether equity, real estate or gold had a great going in 2010. However, a closer look will show that all these asset classes did go through ups and downs during the year. Even as investors may get worried over periods of uncertainty, one can expect volatility to give ample opportunities to maximise profits in 2011.

The equity markets gave a 17 per cent return in an extremely choppy fashion. The index moved in the 18,000 and 16,000 band in the first seven months of the year. The second half saw a clear uptrend that took the markets to the 21,000 level by Diwali. Even commodities made news last year. Gold was stuck in a range of Rs 16,000-16,800 per 10 grams for an extended period till May 2010 and then moved in the Rs 17,000-18,500 per 10 grams range for the next few months. It » Read more..

Master The Art Of Facing Losses With Dignity – Amar Pandit

Publication: The Economic Times Mumbai; Date: Jan 6, 2011; Section: Personal Finance; Page: 14;

THERE is much to be admired about us homo sapiens. We are capable of passionate work, creative ideas and tireless effort — all of which are results of good choices. Yet, when one looks at the investment landscape, the choices which majority of the people make have not been very inspiring. One such phenomenon ‘mental accounting’ was high-lighted last week. This week we will look at ‘loss aversion’.

Have you ever watched a movie in a theatre that you felt was complete nonsense and a waste of time? Did you ever walk out of the theatre? Very few people will because they have paid . 200 per ticket. This is a classic example of lossaversion. In this behavioural bias, our feelings or biases towards loss can force us to make irrational choices.

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