This is the archive of all articles and analysis related to the nature of stock market risk and reward
R. Balakrishnan is a person of great renown in the banking and financial services space. He helped set up CRISIL and the Malaysian credit bureau, was head of equity research at DSP Merrill Lynch, executive vice president of Edelweiss, to name just a few. He is now an organic farmer, writes a blog and has a column at MoneyLife….
Continue reading →This is a guest post by Krishna Kishore who writes a refreshing blog on stock investing at tyroinvestor.com. He readily agreed to write this post, explaining the features of a stock screener, upon my request. ~~~~~~~~~~~~ There are many stock screeners available online like the ones from Google Finance, Reuters, Equity master and paid services…
Continue reading →Last month I had posted a stock price downloader from the BSE website. Jatin Visaria pointed out that if the price is not adjusted for corporate actions bonuses, splits and dividends, the data is not useful for analysis. Krishna Kishore pointed out that Moneycontrol lists historical prices adjusted for bonuses and splits. I thank Krishna…
Continue reading →Ever since I introduced the concept of SI-PE (PE based SIP investing) in the post, ‘Are Mutual Fund SIPs Suitable for Disciplined Long-Term Investors?‘, I have been worried because it instantly struck a chord with many readers. SI-PE refers to manual investment based on the PE value of an established index. If the PE is greater than…
Continue reading →Are we at the start of a bull run? Will the markets tank after elections? Should we book profits now, while the going is good? Should I invest now or wait after the election results are announced? Such questions are on everyone’s mind. While dealing with volatile instruments like equity, some amount of tactical nous…
Continue reading →As a student of market volatility, my eyes popped out in interest to learn that we have index that gives an idea about market volatility – the India Vix. India VIX is a measure of how volatile the market is expected to be over the next 30 days. Its calculation is described here in extraordinary…
Continue reading →No matter how often we mention/promote/advertise that equity investments if continued over a long enough period would generate handsome returns, many investors seem to require constant reassurance and encouragement to continue their equity investments. A person who wishes to remain anonymous made the following SIP rolling returns analysis with Sensex data to provide his friends…
Continue reading →Here is a list of all the Excel-based free personal finance calculators available for download in the blog. This list will be available in a separate page in the navigation menu. If you see calculators you have not checked out before, do give them a try this weekend. If you find the calculators useful, please…
Continue reading →Since we cannot change the way the stock market operates all we can do is to make sense of its returns and invest wisely.In this post I use Sensex data to understand the nature of its fluctuating returns (including dividends!). The Excel sheet attached which will be of interest and utility to all investors regardless…
Continue reading →Use this calculator to simulate sensex returns from 1980 onwards. This gives you an idea of how the stock market works. If you average sensex returns over a 15-year or 20-year period you will get somewhere like 10%-15% so staying in equities for a long time is crucial. Howeverwhen you start investing can affect your…
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