Why PE 10 Works Better In Some Markets Than Others

It is well-documented that starting valuations have been found to be highly predictive of subsequent returns, not just in the United States, but in many other equity markets around the world. One of the more popular valuation metrics for evaluating prospective returns in a given market is the ‘cyclically-adjusted price-to-earnings’ ratio, or ‘CAPE,’ developed by…

Nightmare on China’s Wall Street

The nightmare on China’s wall street is returning, three years after China’s last futile attempt to save its stock market. On Tuesday, 1,023 companies fell by the daily 10 percent limit amid concerns over escalating trade conflict with the U.S. Already among the worst performers in Asia this year, the benchmark Shanghai Composite Index plunged…

The Mental Habit That Helped Warren Buffett Become a Billionaire

Warren Buffett tends to bill himself as an ordinary guy who just happened to make a ton of money by being thoughtful, patient, and frugal. He’s also very smart, and puts a lot of time and effort into thoroughly understanding the market and his investments. But there’s one other quality Buffett has that the rest…

How To Short A Stock & Make Money

To a novice investor, short selling sounds like one of those sophisticated, mysterious techniques that professional traders use to rob others blind. In reality, anyone can short a stock and make a profit if the stock drops in price.Short selling can be a powerful tool in your investment toolbox, but you need to understand the…

Basic Investing Strategies – How to Invest

Learning how to invest your money is one of the most important lessons in life. You don’t need to be college educated to start investing, in fact, you don’t even need to be a high school graduate. You just need to have a basic understanding of business and have the confidence to make a plan…

Is Coal India, Reliance Power Reloaded?

The BSE Sensex was around 18000 when Reliance Power came out with its IPO in February 2008.  The crash that followed the listing brought the markets down to around 8000.  It was the bloodiest bloodbath i ever experienced as an investor in the market.  I took that opportunity to buy a lot of good companies…

Has the correction set in?

After a spectacular 100% rise from 2008 levels, the markets moved into a bubble territory.  The Greece debt downgrading to junk status might be the needle that would prick the bubble. For an ordinary man on the street, its a disaster.  For the newscasters, its breaking news.  For a long term investor, its a good…

Random post

Been swamped with work. Have no time to read websites let alone update this one. Have taken a break from reading books too as i realised that the business magazines that i had bought are gathering dust in a corner.  So, carry them in my bag to and fro work hoping to read them than…

The bloodbath continues…

The one picture on the website of Huffingtonpost sums up the crisis the world markets, wall street is in.  Bush has in his 8 years of Presidency not only ruined America, but also the world economy. I wont be surprised if the BSE Sensex hits the lower circuit breaker at least once today. Bulls make…

Blood on the street

Finally after a lot of dithering, the global markets caught the sub-prime flu and what a crash it was. India was the worst performing market today. Almost 1400 points (7%) down in a single day. None of the stocks were spared. Every sector was in the red. Now is the time for bargain hunting. Whoopie….

WTF of the day – BJP wants probe on Sensex crash

Holding the UPA government responsible for the sensex crash on Wednesday, BJP demanded a joint parliamentary committee (JPC) to probe the beneficiaries of the crash triggered by Sebi’s “untimely” proposal to regulate participatory notes. The party pointed fingers at FM P Chidambaram and asked him to explain why he waited for the market to fall…