If there is something that can take oil up or down, it’s the geopolitical risk. Is it? The top news now says that, “Crude oil may fall next week after Iran’s release of 15 British naval personnel eased concern that shipments from the Persian Gulf will be disrupted; 48 per cent of oil analysts said […]
It may appear funny to use the hemline indicator to predict stock prices, but as an indicator it makes money. When we first read about the hemline indicator, it seemed like a funny joke. A market going up and down with the length of skirts was a strange idea of an economic indicator. Ralph Rotnem […]
Hemingway said, “There are only three sports – bullfighting, motor racing, and mountaineering”. Mountaineering we feel is also an inspiration for financial news. The only time an asset catches attention is when it is at the top of a mountain. Like for example the 7 year top the Rupee crossed recently. “The Indian rupee climbed […]
The markets have consistently proved that profiting from news breaks is not an easy task. Even in 1850 people needed faster stock news. And Reuters used carrier pigeons to do that. The birds were faster than the post train. This was the missing link to connect Berlin and Paris. The stock news from the Paris […]
In the age of consumerism even ‘History’ sells. And the most opportune time to sell economic history is after a small price dip (some call it crash) across markets. And reading about financial crashes does wonders for Yahoo and Google: When was the last time Shanghai crashed? When was the last time Dow crashed more […]
The stock market saying goes like this, “Follow the trend”. But what if you are invested in Hindustan Zinc. SENSEX (even after the last few days fall) was up 5% from Dec 06, while HZNC was down 39%, a relative underperformance of 44%. Well this is nothing short of crisis for ZINC bulls. Even GOLD […]
We are in the Aquarian age, the age of unpredictability. The hedging system we proudly create and boast off can not safeguard the very farmer, the first user of risk management. The farmer was the reason why we created the system in the first place. In the past 18 months, 1200 cotton farmers of Vidarbha […]
Al Ries and Jack Trout summed it beautifully. To become successful in life, you need horse sense to ride a winner. When to get on a sector horse and when to get off is a sense not every body has. Identifying outperformers from underperformers needs home work. For example, sector risk is the greatest contributor […]
Amalthea raised Zeus on the milk of a goat and in turn Zeus gave her the goat’s horn, the horn of plenty, which had the power to give to the person in possession of it whatever he or she wished for. This is the legend of cornucopia. Despite what contemporary mindsets might be, for us […]
Daniel Kahneman, Father of behavioral finance has clearly illustrated in his life long and Nobel Prize winning work that a majority of us humans are loss averse. Even if it means making a wrong choice. If we plug his work on the Elliott fractal then we can assume that all down ending C waves will […]