Offline
| Post a Message | Explore Forums | Browse Stock Messages | Hot Discussions | Top rated Messages | Top Boarders | |
|
|
|
latikav
Platinum
"Om *SAI* Namo Namah: _/\_
-----------------------------------------
"Keep your faith in beautiful things;
in the sun when it is hidden,
in the Spring when it is gone."
----------------------------------------------
Allow Your Own Inner Light to Guide You-------------
Dos and don’ts
• Economic crisis. market meltdown. rising interest rates. rising inflation... times are, indeed, tough. Here are 10 recommendations on what you should and shouldn't do to keep your financial health on track.
What you should do
• Follow the news. Swinging markets and new regulatory initiatives... things are changing quickly. Each development affects different sectors differently. Follow the financial media-and Business Today's Money section, for instance-to keep abreast of the latest developments in India Inc. and for advice on how to profit from them.
• Get your finances in order. There has never been a better time to make a budget and start paying off your debt and credit cards, personal loans, etc. If possible, transfer your loans from a bank that's charging a higher rate of interest to one that promises a cheaper rate.
• Rethink your plans to retire. If you're expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans.
• Call your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser, no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.
What you shouldn't do
• Bail out. Dumping your stocks or equity mutual funds now, when values are especially low, will guarantee that you turn paper losses into real ones. Even if there's more downside to come, staying on course often pays off during times of economic uncertainty.
• Stop saving. Those regular contributions you've been making to your savings or retirement accounts are an important part of good financial discipline, and there's no reason to stop them now. We've long recommended the virtue of making regular, monthly savings. Continue this habit, even if it means cutting down on other things. like the weekly family outing, or that after-office drink with friends.
• Speculate. While lower prices of shares, create opportunities, speculation can get you into big financial trouble. Avoid it.
• Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment incomes, making it difficult to determine how much debt you can handle. If you must borrow, say, to put a child through college or to buy a house, be doubly sure that you've examined all the options and risks.
• Stop living. Although these times demand extra caution, there's such a thing as over-reacting. So, don't overreact. Reflect carefully and, where necessary, adjust. But don't stop enjoying the little things of life. You'll only make yourself sad.
06/10
-----------------------------------------
"Keep your faith in beautiful things;
in the sun when it is hidden,
in the Spring when it is gone."
----------------------------------------------
Allow Your Own Inner Light to Guide You-------------
Dos and don’ts
• Economic crisis. market meltdown. rising interest rates. rising inflation... times are, indeed, tough. Here are 10 recommendations on what you should and shouldn't do to keep your financial health on track.
What you should do
• Follow the news. Swinging markets and new regulatory initiatives... things are changing quickly. Each development affects different sectors differently. Follow the financial media-and Business Today's Money section, for instance-to keep abreast of the latest developments in India Inc. and for advice on how to profit from them.
• Get your finances in order. There has never been a better time to make a budget and start paying off your debt and credit cards, personal loans, etc. If possible, transfer your loans from a bank that's charging a higher rate of interest to one that promises a cheaper rate.
• Rethink your plans to retire. If you're expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans.
• Call your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser, no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.
What you shouldn't do
• Bail out. Dumping your stocks or equity mutual funds now, when values are especially low, will guarantee that you turn paper losses into real ones. Even if there's more downside to come, staying on course often pays off during times of economic uncertainty.
• Stop saving. Those regular contributions you've been making to your savings or retirement accounts are an important part of good financial discipline, and there's no reason to stop them now. We've long recommended the virtue of making regular, monthly savings. Continue this habit, even if it means cutting down on other things. like the weekly family outing, or that after-office drink with friends.
• Speculate. While lower prices of shares, create opportunities, speculation can get you into big financial trouble. Avoid it.
• Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment incomes, making it difficult to determine how much debt you can handle. If you must borrow, say, to put a child through college or to buy a house, be doubly sure that you've examined all the options and risks.
• Stop living. Although these times demand extra caution, there's such a thing as over-reacting. So, don't overreact. Reflect carefully and, where necessary, adjust. But don't stop enjoying the little things of life. You'll only make yourself sad.
06/10
| latikav's Message History | latikav's Network | latikav's Interest Area |
| Messages from latikav - 221 | Boarders tracking latikav – 30 | Tracked Topics - 15 |
| Replies to latikav – 106 | latikav is tracking - 13 | Tracked Threads - 5 |
| latikav’s rated messages – 27 | ||
| Messages rated by latikav – 58 | ||
Last visited by:
Also see latikav’s rated messages
15 Oct 2008 23:31
View full thread (103 messages)
Tracked by: 3 Boarder
15 Oct 2008 17:34
View full thread (2 messages)
Tracked by: 0 Boarder
15 Oct 2008 17:27
View full thread (2 messages)
Tracked by: 0 Boarder
15 Oct 2008 15:46
View full thread (2 messages)
Tracked by: 0 Boarder
NEW DELHI: Reserve Bank of India Governor D Subbarao is expected to announce more measures to ease the liquidity conditions in the economy after a review meeting with Prime Minister Manmohan Singh late Tuesday.
Finance Minister P Chidambaram, who was also present at the meeting, told reporters here Wednesday that it was also agreed at the meeting that credit to borrowers must be ensured at least to the extent of sanctioned amounts.
"The RBI governor is on his way to Mumbai and will work out the details of the measures agreed upon. I expect to be able to make a statement later in the afternoon," the finance minister said.
"The prime minister reviewed the financial situation, with particular reference to the liquidity position. The developments in, and measures taken by, other countries were also reviewed."
It was noted at Tuesday`s meeting, also attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, that inter-bank lending remained a constraint.
"It is also important to enhance the credit limits where borrowers require more credit," he said, adding banks were able to access only Rs 35 bn from the special window of Rs 200 bn opened by RBI for liquidity to mutual funds.
He, nevertheless, added that that the call money rate - the rate at which banks borrow short-term funds from each other - was around 9 per cent Tuesday and that Rs 625 bn has been accessed by banks under two tranches of the liquidity adjustment programme.
Prior to the review with the prime minister, the central bank governor met the finance minister and discussed the impact of steps so far and if there was a need for more measures to cushion India from the global financial crisis.
"Liquidity situation is comfortable. Everything is under control," Subbarao told reporters after the meeting with the finance minister and key officials Tuesday evening at the North Block, the seat of India`s finance ministry.
ET...
...
Finance Minister P Chidambaram, who was also present at the meeting, told reporters here Wednesday that it was also agreed at the meeting that credit to borrowers must be ensured at least to the extent of sanctioned amounts.
"The RBI governor is on his way to Mumbai and will work out the details of the measures agreed upon. I expect to be able to make a statement later in the afternoon," the finance minister said.
"The prime minister reviewed the financial situation, with particular reference to the liquidity position. The developments in, and measures taken by, other countries were also reviewed."
It was noted at Tuesday`s meeting, also attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, that inter-bank lending remained a constraint.
"It is also important to enhance the credit limits where borrowers require more credit," he said, adding banks were able to access only Rs 35 bn from the special window of Rs 200 bn opened by RBI for liquidity to mutual funds.
He, nevertheless, added that that the call money rate - the rate at which banks borrow short-term funds from each other - was around 9 per cent Tuesday and that Rs 625 bn has been accessed by banks under two tranches of the liquidity adjustment programme.
Prior to the review with the prime minister, the central bank governor met the finance minister and discussed the impact of steps so far and if there was a need for more measures to cushion India from the global financial crisis.
"Liquidity situation is comfortable. Everything is under control," Subbarao told reporters after the meeting with the finance minister and key officials Tuesday evening at the North Block, the seat of India`s finance ministry.
ET...
...
15 Oct 2008 11:14
View full thread (5 messages)
Tracked by: 1 Boarder
ardstick here, whether you should pay a P/E of 10 or 20 for a cement company should be based on some hardnosed estimates about cement prices, raw material costs and hence, its potential earnings growth over the next two years.
Ideally, have about 10 stocks in your portfolio. Make a list of factors that can affect their performance, both internal and external. Keep revisiting these factors at regular intervals, if they signal danger, you may need to take action.
Let`s say, for an automobile company, these would be sales numbers, promotions, interest rates for auto loans, growth in road infrastructure, disposable income trends, inland transport demand (for CVs), metal prices, rubber prices and fuel prices. A simple grid can be prepared, assessing where the company is and where you expect it to go, if it veers off course, it is time to exit.
Inculcate discipline and avoiding greed---------------
The most important and difficult part, which experts never tire repeating but are ignored, is inculcating discipline and avoiding greed.
Those who entered early and exited late in a bull rally which a full five years will know what this means. Have certain price targets, reassess the fundamentals (which everyone agreed did not justify asset prices), and exit if your targets are met.
There is more than can be said but this is good for a start. You can add more theories to this and customise it. If all this seems unglamorous compared to buying stocks on hunches and tips, stay away from equities; mutual funds are the better option for you.
The Economic Times.......................
Ideally, have about 10 stocks in your portfolio. Make a list of factors that can affect their performance, both internal and external. Keep revisiting these factors at regular intervals, if they signal danger, you may need to take action.
Let`s say, for an automobile company, these would be sales numbers, promotions, interest rates for auto loans, growth in road infrastructure, disposable income trends, inland transport demand (for CVs), metal prices, rubber prices and fuel prices. A simple grid can be prepared, assessing where the company is and where you expect it to go, if it veers off course, it is time to exit.
Inculcate discipline and avoiding greed---------------
The most important and difficult part, which experts never tire repeating but are ignored, is inculcating discipline and avoiding greed.
Those who entered early and exited late in a bull rally which a full five years will know what this means. Have certain price targets, reassess the fundamentals (which everyone agreed did not justify asset prices), and exit if your targets are met.
There is more than can be said but this is good for a start. You can add more theories to this and customise it. If all this seems unglamorous compared to buying stocks on hunches and tips, stay away from equities; mutual funds are the better option for you.
The Economic Times.......................
15 Oct 2008 11:13
View full thread (5 messages)
Tracked by: 1 Boarder
Stock market crashes are not different from personal crises, first comes denial, then disbelief and depression.
Coming out of it is difficult but not impossible. That`s what investors need to do, even if emotions have no place where money is involved.
Financial advice remains the same: buy things at the right price and don`t get greedy.
And the experience in India, going back to the Harshad Mehta scam (1992-93), the economic slowdown (1995-96) and the burst internet bubble (2000), all saw massive market crashes, which, in hindsight, were all opportunities.
Kinds of Investors----------So does that mean you should start investing now? There are two kinds of investors today.
One is beyond his mid-thirties and has hence bled in the earlier crises too. If he lost everything this time too, he should give up on equities. Debt, the safe variety like fixed deposits, is his best hope. But those who have some cash left, by lowering exposure to equities starting, say, two years ago, have some hope. They can now begin scouting for stocks.
Then, there are people who have been investors since 2003; they have been hit by a long epidemic of the winner`s curse. Those who shifted into cash are the wise ones; they just have to wait for good picks. The others who are sitting on huge losses, this is the best time to start applying the basics of investing.
When to invest?---------------------------First, reassess your personal financial health. If liabilities are higher than assets or the gap is narrow, and similarly with expenditure and income, set it right. This has nothing to do with investing, but first your house should be in order. It may mean selling off loss-making shares, a holiday home or any non-essential investment. If you have borrowed to invest in shares get rid of that loan and this practice.
With your financial income secure, now focus on your portfolio. Is the asset allocation appropriate? If this rally has made you nervous, shift towards fixed income, the secured variety, mind you. FDs are giving you returns of 10.5%, not the 6% you were getting some years ago. Use this time to rebalance your debt portfolio, lock into some of these debt instruments. Chances are you won`t see these rates in some years from now.
Investment tips---------------------
If you are a mutual fund investor, with a SIP, do nothing, just examine if your scheme is a sound one. Is the investment theme a broad one or does it tie the fund manager to a particular asset class.
Broad themes are better because exposure to a sector or segment is riskier now.
In equities, look at your investments. A stock may have halved from Rs 100, but it can halve again. Scrutinise its fundamentals; look at earnings growth for the next two years, its cash position, dilution prospects and, most importantly, management quality.
Throw out those fancy bull market ratios like EV/EBIDTA (enterprise value divided by earnings before interest, depreciation, tax and amortisation), P/E (price to earnings ratio) is back in fashion.
continued......................
Coming out of it is difficult but not impossible. That`s what investors need to do, even if emotions have no place where money is involved.
Financial advice remains the same: buy things at the right price and don`t get greedy.
And the experience in India, going back to the Harshad Mehta scam (1992-93), the economic slowdown (1995-96) and the burst internet bubble (2000), all saw massive market crashes, which, in hindsight, were all opportunities.
Kinds of Investors----------So does that mean you should start investing now? There are two kinds of investors today.
One is beyond his mid-thirties and has hence bled in the earlier crises too. If he lost everything this time too, he should give up on equities. Debt, the safe variety like fixed deposits, is his best hope. But those who have some cash left, by lowering exposure to equities starting, say, two years ago, have some hope. They can now begin scouting for stocks.
Then, there are people who have been investors since 2003; they have been hit by a long epidemic of the winner`s curse. Those who shifted into cash are the wise ones; they just have to wait for good picks. The others who are sitting on huge losses, this is the best time to start applying the basics of investing.
When to invest?---------------------------First, reassess your personal financial health. If liabilities are higher than assets or the gap is narrow, and similarly with expenditure and income, set it right. This has nothing to do with investing, but first your house should be in order. It may mean selling off loss-making shares, a holiday home or any non-essential investment. If you have borrowed to invest in shares get rid of that loan and this practice.
With your financial income secure, now focus on your portfolio. Is the asset allocation appropriate? If this rally has made you nervous, shift towards fixed income, the secured variety, mind you. FDs are giving you returns of 10.5%, not the 6% you were getting some years ago. Use this time to rebalance your debt portfolio, lock into some of these debt instruments. Chances are you won`t see these rates in some years from now.
Investment tips---------------------
If you are a mutual fund investor, with a SIP, do nothing, just examine if your scheme is a sound one. Is the investment theme a broad one or does it tie the fund manager to a particular asset class.
Broad themes are better because exposure to a sector or segment is riskier now.
In equities, look at your investments. A stock may have halved from Rs 100, but it can halve again. Scrutinise its fundamentals; look at earnings growth for the next two years, its cash position, dilution prospects and, most importantly, management quality.
Throw out those fancy bull market ratios like EV/EBIDTA (enterprise value divided by earnings before interest, depreciation, tax and amortisation), P/E (price to earnings ratio) is back in fashion.
continued......................
14 Oct 2008 21:04
View full thread (1 messages)
Tracked by: 0 Boarder
GMR, the infrastructure major with business presence in energy, airports, highways and urban infrastructure, has completed the acquisition of 50 per cent stake in InterGen NV, a global power generation company.
InterGen has ownership interest in 12 power plants (including one power plant under construction in the Netherlands) located in the UK, the Netherlands, Mexico, Australia and the Philippines, with total net capacity (net of auxiliary) of 12,766 Mw (8,086 Mw of operational capacity and 4,680 Mw of assets under development).
After signing of the definitive agreements on June 20, various anti-trust approvals in the United States, Europe, Mexico, Australia and Philippines were obtained over a period of three months and subsequently, the transaction was completed on October 9.
GMR has closed the transaction at a purchase price of $954 million, the company informed the Bombay Stock Exchange, today. N M Rothschild & Sons worked as the sole exclusive financial advisor whereas White & Case LLP worked as Legal advisor to the GMR Group on this transaction.
BS.....
InterGen has ownership interest in 12 power plants (including one power plant under construction in the Netherlands) located in the UK, the Netherlands, Mexico, Australia and the Philippines, with total net capacity (net of auxiliary) of 12,766 Mw (8,086 Mw of operational capacity and 4,680 Mw of assets under development).
After signing of the definitive agreements on June 20, various anti-trust approvals in the United States, Europe, Mexico, Australia and Philippines were obtained over a period of three months and subsequently, the transaction was completed on October 9.
GMR has closed the transaction at a purchase price of $954 million, the company informed the Bombay Stock Exchange, today. N M Rothschild & Sons worked as the sole exclusive financial advisor whereas White & Case LLP worked as Legal advisor to the GMR Group on this transaction.
BS.....
more
latikav’s Network
latikav’s Interest Area
Tracked Topics