Archive for January 2, 2014

The January Effect

Bogus Effect This time of year, we often find ourselves reading about the “January Effect,” which is sometimes described as a predictable way to forecast returns, and sometimes as a way to know whether this is, or is not, a good year to invest and make some money. Unfortunately, most of this reporting is nonsense. Let’s start with the predictable part.  Wouldn’t it be nice if, even for just one month of the year, we could know whether the market is going to go up or down?  That’s what market pundits are implying in their January Effect reporting: that markets have a strong tendency to rise in January.  Why?  The explanation, first offered in 1942, is twofold: » Read more..

Bitcoins: Investment or Bust?

You may have been hearing lately about an alternative currency known as bitcoins, and the stories tend to be bizarre. Like, for example, the person who traded in his computer for a newer model and later realized (too late, as it turned out) that the hard drive contained $7.5 million worth of bitcoin currency in an encrypted “wallet.” Or the recent heist of bitcoins with an estimated value of $100 million from an illegal online drug sales website whose ripped-off drug lord customers are the kind of people who are not averse to having people killed with far less provocation. This person is now driving around with a hard drive whose electrical impulses are worth more than seven and a half tons of marihuana or a million grams of cocaine. These estimates are based on recent prices from Silk Road, another prominent bitcoin marketplace that was shut down by the FBI a few weeks ago because, thanks to the anonymity of bitcoin currency, it had managed to do an estimated $1.2 billion in virtually untraceable sales of heroin, ecstasy, marihuana, cocaine, firearms, ammunition and computer hacking services to prominent members of the criminal underground.

For the uninitiated, Bitcoins are a relatively new digital currency. The actual coins are, of course, not coins at all; they are essentially records in a digital archive stored on servers throughout the web, in the form of digital signatures, timestamps, wallets and public keys, all created in open-source computer code in a way that is designed to foil hackers. Because a Bitcoin transaction doesn’t involve banking or transaction fees, some economists think that they represent an early version of what all currencies will look like in the future. » Read more..

Collector v/s Investor

Collector Vs Investor









This is one stock market, fortune-telling, goof-up that has the potential to trend on Twitter as an #EpicFail

Somewhere in August 2000, Fortune Magazine came up with a buy-and-forget portfolio for investors who were looking to retire in 2010. The promise was “If you’re a long-term investor, these 10 should put your retirement account in good stead and protect you from those recurring nightmares about the stocks that got away…”

So how did these stocks really fare over the next 10 years? Talk about hitting the bottom.  » Read more..

Happy New Year 2014 !!!













Team MFA