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Rally reaches across ocean
Mood doesn`t fade over weekend, as U.S. stocks jump again — and U.K. and European markets have historic days. Investors applaud the U.S. backstop of Citigroup. Obama unveils team in Chicago.
Dow Jones Industrial Average:+221.18 +2.75%(8,267.60)
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CONTROL Money, Money, Money, Money, Money.....
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sambala
Fourteen Years Of Xmas Every Day
An electrician who celebrates Christmas every day is having the cheer taken out of his festive spirit by the credit crunch.
Andy Parks - who is known as Mr Christmas - has enjoyed a full festive dinner with all the trimmings every day for the past 14 years.
He estimates he has eaten 117,600 sprouts, munched 94,080 mince pies and opened 204,400 crackers since the habit started.
"I`ve been through 37 electric ovens and worn out 23 video recorders by watching the Queen`s Speech every day," he said.
"I`ve also sent myself 235,206 Christmas cards. But these days the postage is so dear I`m having to deliver them myself."
He discovered the joys of celebrating everyday in July 1994 when he found hanging up Christmas decorations stopped him feeling bored and fed up.
This year`s celebration will have to be more austere though because of the economic downturn, the 44-year-old from Melksham, Wiltshire, said.
"The credit crunch is getting to me big time and I may even have to cut out the champagne and start singing for my Christmas dinner," he said.
"The lunch with all the trimmings and alcohol is costing in excess of £150 a week, but I`m fighting hard not to let the financial crisis ruin the celebrations."
Instead of a 14lb turkey, its now 9lb; and two trees has been restricted to just the one.
Mr Christmas is also trying to save the £70,000 needed to book a yuletide-themed funeral, which would allow him to be buried in a coffin filled with Brussels sprouts.
He also wants Noddy Holder to sing Slade`s hit Merry Christmas Everyone to mourners when the time comes.
"People do think I`m crackers, but I enjoy treating myself and I`m the only one in the world who does it," he explained.
"Others have tried to copy me, but they can`t last.
"When people come to my house it turns a sad face into a smiling one, and the happiness stays with them."
"My routine every day has been to get up and have seven or eight mince pies and glass of sherry for breakfast. After that I open the presents I`ve wrapped for myself."
Mr Christmas, Andy Parks
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Fourteen Years Of Xmas Every Day
An electrician who celebrates Christmas every day is having the cheer taken out of his festive spirit by the credit crunch.
Andy Parks - who is known as Mr Christmas - has enjoyed a full festive dinner with all the trimmings every day for the past 14 years.
He estimates he has eaten 117,600 sprouts, munched 94,080 mince pies and opened 204,400 crackers since the habit started.
"I`ve been through 37 electric ovens and worn out 23 video recorders by watching the Queen`s Speech every day," he said.
"I`ve also sent myself 235,206 Christmas cards. But these days the postage is so dear I`m having to deliver them myself."
He discovered the joys of celebrating everyday in July 1994 when he found hanging up Christmas decorations stopped him feeling bored and fed up.
This year`s celebration will have to be more austere though because of the economic downturn, the 44-year-old from Melksham, Wiltshire, said.
"The credit crunch is getting to me big time and I may even have to cut out the champagne and start singing for my Christmas dinner," he said.
"The lunch with all the trimmings and alcohol is costing in excess of £150 a week, but I`m fighting hard not to let the financial crisis ruin the celebrations."
Instead of a 14lb turkey, its now 9lb; and two trees has been restricted to just the one.
Mr Christmas is also trying to save the £70,000 needed to book a yuletide-themed funeral, which would allow him to be buried in a coffin filled with Brussels sprouts.
He also wants Noddy Holder to sing Slade`s hit Merry Christmas Everyone to mourners when the time comes.
"People do think I`m crackers, but I enjoy treating myself and I`m the only one in the world who does it," he explained.
"Others have tried to copy me, but they can`t last.
"When people come to my house it turns a sad face into a smiling one, and the happiness stays with them."
"My routine every day has been to get up and have seven or eight mince pies and glass of sherry for breakfast. After that I open the presents I`ve wrapped for myself."
Mr Christmas, Andy Parks
...
In reply to:
CONTROL Money, Money, Money, Money, Money.....
Posted by : sambala
Biggest Cruise Ship Touches Water
So you build the biggest cruise liner in the world, complete with every type of entertainment you could possibly imagine, so what next?
Build a bigger one. And think of even more weird and wonderful ideas.
Oasis of the Seas is not only the largest liner in the world, but also the most expensive at not far off a mere £1bn.
So what do you get for your money? A levitating bar, a real life park complete with growing trees, fairground with zip line, and amphitheatre which overlooks the ocean.
It comes just months after the launch of the Independence of the Seas which will continue to be the largest working liner until Oasis takes its first passengers in December next year.
World`s Largest Cruise Ship Facts
1,187ft long, 240 ft tall
220,000 tonnes Capacity 6,296 guests, 2,164 staff
Will use 22 acres of carpet
Will carry 2,300 tonnes of swimming pool water
Will produce 50metric tonnes of ices cubes per day
The ship is 65% complete and touched water for the first time this weekend when it was floated out of its dry dock at its birth place in Turku, Finland.
With so many facilities - too many to mention - no wonder owners Royal Caribbean is confident its customers will grow. It predicts by 2012 more than two million Brits will take a cruise each year.
And despite the doom and gloom most companies are experiencing it also expects 1.5 million cruisers to take to the water this year.
So how does spending a £1bn in the worst economic downturn for decades add up?
Richard Fain, chairman and chief executive of US-based Royal Caribbean, is optimistic.
"Like every other industry we are suffering in this recession too but people still need their vacations," he said.
"At times like this people look more carefully and a cruise vacation is a known value - people know what they`ll spend before they go - and that is what helps us."
The main attractions which Royal Caribbean say will make for a `dream holiday` include the unique Rising Tide bar which is the first ever moving bar at sea, Central Park, complete with living trees and a hand crafted carousel while the Aquatheatre provides the perfect backdrop theatrical performances.
The contents of the enormous vessel will now be created with 2,700 rooms - some more extravagant than others. For the ultimate luxury you can try the Royal Loft suite which is 1,524sq ft of pure indulgence with an accommodating private wet bar, library and baby Grand piano.
So now what next? Well as the ship vacates the dry dock work has already begin on the next.
Like every other industry we are suffering in this recession too but people still need their vacations.
Richard Fain, chairman and chief executive of Royal Caribbean
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Biggest Cruise Ship Touches Water
So you build the biggest cruise liner in the world, complete with every type of entertainment you could possibly imagine, so what next?
Build a bigger one. And think of even more weird and wonderful ideas.
Oasis of the Seas is not only the largest liner in the world, but also the most expensive at not far off a mere £1bn.
So what do you get for your money? A levitating bar, a real life park complete with growing trees, fairground with zip line, and amphitheatre which overlooks the ocean.
It comes just months after the launch of the Independence of the Seas which will continue to be the largest working liner until Oasis takes its first passengers in December next year.
World`s Largest Cruise Ship Facts
1,187ft long, 240 ft tall
220,000 tonnes Capacity 6,296 guests, 2,164 staff
Will use 22 acres of carpet
Will carry 2,300 tonnes of swimming pool water
Will produce 50metric tonnes of ices cubes per day
The ship is 65% complete and touched water for the first time this weekend when it was floated out of its dry dock at its birth place in Turku, Finland.
With so many facilities - too many to mention - no wonder owners Royal Caribbean is confident its customers will grow. It predicts by 2012 more than two million Brits will take a cruise each year.
And despite the doom and gloom most companies are experiencing it also expects 1.5 million cruisers to take to the water this year.
So how does spending a £1bn in the worst economic downturn for decades add up?
Richard Fain, chairman and chief executive of US-based Royal Caribbean, is optimistic.
"Like every other industry we are suffering in this recession too but people still need their vacations," he said.
"At times like this people look more carefully and a cruise vacation is a known value - people know what they`ll spend before they go - and that is what helps us."
The main attractions which Royal Caribbean say will make for a `dream holiday` include the unique Rising Tide bar which is the first ever moving bar at sea, Central Park, complete with living trees and a hand crafted carousel while the Aquatheatre provides the perfect backdrop theatrical performances.
The contents of the enormous vessel will now be created with 2,700 rooms - some more extravagant than others. For the ultimate luxury you can try the Royal Loft suite which is 1,524sq ft of pure indulgence with an accommodating private wet bar, library and baby Grand piano.
So now what next? Well as the ship vacates the dry dock work has already begin on the next.
Like every other industry we are suffering in this recession too but people still need their vacations.
Richard Fain, chairman and chief executive of Royal Caribbean
...
In reply to:
CONTROL Money, Money, Money, Money, Money.....
Posted by : sambala
PBR: Gamble Sends Debt Rocketing
Government borrowing is set to rocket to £118bn next year after Chancellor Alistair Darling took a £20bn gamble in his pre-Budget report (PBR).
Chancellor Alistair Darling is to cut VAT from 17.5% to 15% as part of his mini-Budget to support households, protect businesses and stimulate the economy.
The FTSE 100 index of leading shares had its biggest ever one-day jump, rising 9.84%, but commentators pointed to factors in addition to Mr Darling`s speech to explain the leap.
The VAT cut was a central plank of a £20bn fiscal stimulus announced by the Government.
The PBR also included measures to help small businesses, basic-rate taxpayers and homeowners.
The VAT reduction will come into force from 1 December and will be offset by higher duties on petrol, alcohol and tobacco.
But the Chancellor warned the Commons that borrowing would hit £118bn next year before coming down gradually.
Mr Darling will also impose a new 45p tax rate on high earners from April 2011 to help pay for the tax cuts.
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PBR: Gamble Sends Debt Rocketing
Government borrowing is set to rocket to £118bn next year after Chancellor Alistair Darling took a £20bn gamble in his pre-Budget report (PBR).
Chancellor Alistair Darling is to cut VAT from 17.5% to 15% as part of his mini-Budget to support households, protect businesses and stimulate the economy.
The FTSE 100 index of leading shares had its biggest ever one-day jump, rising 9.84%, but commentators pointed to factors in addition to Mr Darling`s speech to explain the leap.
The VAT cut was a central plank of a £20bn fiscal stimulus announced by the Government.
The PBR also included measures to help small businesses, basic-rate taxpayers and homeowners.
The VAT reduction will come into force from 1 December and will be offset by higher duties on petrol, alcohol and tobacco.
But the Chancellor warned the Commons that borrowing would hit £118bn next year before coming down gradually.
Mr Darling will also impose a new 45p tax rate on high earners from April 2011 to help pay for the tax cuts.
...
In reply to:
CONTROL Money, Money, Money, Money, Money.....
Posted by : sambala
PRESIDENT BUSH: More rescues like Citigroup possible.....
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PRESIDENT BUSH: More rescues like Citigroup possible........
In reply to:
CONTROL Money, Money, Money, Money, Money.....
Posted by : sambala
Obama names his economic team
Geithner nominated as Treasury chief, Summers picked as director of National Economic Council.
NEW YORK -- President-elect Barack Obama named key members of his administration`s economic team Monday, including New York Federal Reserve President Timothy Geithner as his Treasury Secretary nominee and former Harvard President Lawrence Summers as the director of the National Economic Council.
Obama`s announcement was scheduled just hours after the federal government announced a massive rescue package for Citigroup - which President Bush said he`d spoken with Obama about before it was announced.
Mission No. 1 over the next few weeks for Obama`s economic team will be hammering out the details of what the president-elect described this weekend as a two-year economic recovery plan intended to create 2.5 million jobs.
Estimates for how much might be spent on a multi-year stimulus package range as high as $500 billion to $700 billion.
At the center of the plan are investments in the nation`s roads, bridges, schools and alternative-energy infrastructure.
Obama`s top economic team member - his Treasury Secretary - will also be charged with overseeing the dispersal of funds from the controversial $700 billion financial rescue package that Congress passed in October.
Word last week that Obama was likely to nominate Geithner, 47, as his Treasury Secretary sent stocks soaring on Friday.
Geithner, highly respected both on Wall Street and in the Capitol`s corridors, has already been playing a central role in the Treasury`s and Federal Reserve`s efforts to stabilize the financial system. His nomination is expected to provide the kind of continuity in the Treasury`s financial rescue efforts that will be welcome in the markets and among lawmakers.
Bush said Monday morning that Paulson is working closely with the Obama transition team.
As the head of Obama`s National Economic Council, Summers will coordinate economic policy-making and economic policy advice for the president.
Summers, who turns 54 this month, is considered one of the country`s most pre-eminent - and controversial - economists, and he served as Treasury Secretary for two years during the Clinton administration.
Obama also announced that economist Christina Romer will be director his Council of Economic Advisors, which provides economic analysis and advice to the president.
Romer is a professor of economics at the University of California, Berkeley, and co-director of the monetary economics programs at the National Bureau of Economic Research (NBER). NBER is the group that officially determines when U.S. recessions begin and end.
Big stimulus to be signed quickly
Obama`s plans to boost the economy aren`t likely to be limited to investing in infrastructure and energy initiatives.
Several other measures are expected as well. Among some of the possibilities discussed: direct federal aid to states and cities, tax cuts for low- and middle-income Americans, increased food stamp payments, and a tax credit for businesses that create new jobs in the United States.
Whatever Obama and his economic team ultimately decide to include in the economic recovery package, it`s expected that Congress will have the final legislation ready for the president-elect`s signature the day he`s inaugurated.
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Obama names his economic team
Geithner nominated as Treasury chief, Summers picked as director of National Economic Council.
NEW YORK -- President-elect Barack Obama named key members of his administration`s economic team Monday, including New York Federal Reserve President Timothy Geithner as his Treasury Secretary nominee and former Harvard President Lawrence Summers as the director of the National Economic Council.
Obama`s announcement was scheduled just hours after the federal government announced a massive rescue package for Citigroup - which President Bush said he`d spoken with Obama about before it was announced.
Mission No. 1 over the next few weeks for Obama`s economic team will be hammering out the details of what the president-elect described this weekend as a two-year economic recovery plan intended to create 2.5 million jobs.
Estimates for how much might be spent on a multi-year stimulus package range as high as $500 billion to $700 billion.
At the center of the plan are investments in the nation`s roads, bridges, schools and alternative-energy infrastructure.
Obama`s top economic team member - his Treasury Secretary - will also be charged with overseeing the dispersal of funds from the controversial $700 billion financial rescue package that Congress passed in October.
Word last week that Obama was likely to nominate Geithner, 47, as his Treasury Secretary sent stocks soaring on Friday.
Geithner, highly respected both on Wall Street and in the Capitol`s corridors, has already been playing a central role in the Treasury`s and Federal Reserve`s efforts to stabilize the financial system. His nomination is expected to provide the kind of continuity in the Treasury`s financial rescue efforts that will be welcome in the markets and among lawmakers.
Bush said Monday morning that Paulson is working closely with the Obama transition team.
As the head of Obama`s National Economic Council, Summers will coordinate economic policy-making and economic policy advice for the president.
Summers, who turns 54 this month, is considered one of the country`s most pre-eminent - and controversial - economists, and he served as Treasury Secretary for two years during the Clinton administration.
Obama also announced that economist Christina Romer will be director his Council of Economic Advisors, which provides economic analysis and advice to the president.
Romer is a professor of economics at the University of California, Berkeley, and co-director of the monetary economics programs at the National Bureau of Economic Research (NBER). NBER is the group that officially determines when U.S. recessions begin and end.
Big stimulus to be signed quickly
Obama`s plans to boost the economy aren`t likely to be limited to investing in infrastructure and energy initiatives.
Several other measures are expected as well. Among some of the possibilities discussed: direct federal aid to states and cities, tax cuts for low- and middle-income Americans, increased food stamp payments, and a tax credit for businesses that create new jobs in the United States.
Whatever Obama and his economic team ultimately decide to include in the economic recovery package, it`s expected that Congress will have the final legislation ready for the president-elect`s signature the day he`s inaugurated.
...
In reply to:
CONTROL Money, Money, Money, Money, Money.....
Posted by : sambala
::: FEAR + MONEY = CONTROL! ::: We gotta help wake up our confused brothers and sisters to how we`re controlled by fear and money, especially since the American DOW.......
Money, Money, Money, Money, Money.....
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::: FEAR + MONEY = CONTROL! ::: We gotta help wake up our confused brothers and sisters to how we`re controlled by fear and money, especially since the American DOW.......
Money, Money, Money, Money, Money........
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Sir, you have given me a relief by re-producing Mr. Bhave`s advice.I understood it is right to buy stock now if the stock is not bought by borrowed fund.But there is no mention of much talked of recession that can be heard everywhere at every moment through our every walk of life.The recessaion has set in.Those who are master of economy know it for certain and tell us that the recessaion will continue for quite some time and forbid us to take any positive action untill the recession recedes....
In reply to:
Crisis not in Equity Mkt-Only in Credit Mkt
Posted by : rvk41
Sri Bhave the market regulator pointed out that the current global financial meltdown was a crisis in the credit market and not in equity markets and stressed the need for introducing more exchange-traded products to bring about transparency in their transactions.
On the unprecedented slump in the country’s bourses since October, Mr. Bhave made it clear that the recent meltdown was not owing to any market manipulation or a scam. The prime cause was the fact that those FIIs (foreign institutional investors) who had borrowed huge amount of funds for investment were leaving the markets even as long-term investors such as pension funds and retail investors were actually picking up stocks. “We have not found anything in the market that would give us suspicion that something had seriously gone wrong with the market itself,” he said.
Elaborating further, Mr. Bhave noted that only leveraged FIIs such as hedge funds were going out of the market while pension funds and university funds were buying stocks. “Equity is going into the hands of people who have patience,” he said. According to SEBI’s analysis of the market, if four FIIs sold stocks during September 1 to November 14 this year, three others bought them during the same period which indicated minimal net selling.
The net stock sale by FIIs during September 1 to November 14 was worth Rs. 22,000 crore, while the sale by brokers was worth another Rs. 700 crore on proprietary accounts. On the contrary, the net purchase of stocks by mutual funds was worth Rs. 1,000 crore while domestic institutional investors and others, including retail investors, accounted for another Rs. 16,000 crore and Rs. 5,600 crore, respectively.
The market regulator pointed out that smart investors were, in fact, picking up stocks in the current slump. “If you think Indian investors don’t have money, if you think Indian investors are running away, think again. There are some smart guys sitting out there, who think that this market is giving valuations,” he said.
Bhave, however, had a word of caution for retail and institutional investors. While he warned retail investors against borrowing for investing in equities and advised them to keep aside funds for emergency situations, he also cautioned institutional investors against overleveraging to levels that lead to systemic risks in the market.
“Where the system is getting overleveraged and the risk becomes too great for financial markets, we as regulators must intervene and tell them to bring it down,” he said.
For information,with regards
rvkk41
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CNN-IBN
New Delhi: India’s aviation honchos came together at the Hindustan Times Leadership Summit against the backdrop of deepening recession and the worst crisis facing the sector.
Praful Patel Civil Aviation Minister admitted that the biggest hurdle for the aviation industry was lack of infrastructure. The Indian aviation sector has reported a loss of Rs 8,000 cr in the recent past.
“The biggest reason why Indian aviation did not grow all these years is wrong taxation because even today we fail to acknowledge that air transport is a mode of public transport. The biggest reason is that not creating the right infrastructure,” he said.
“Tell me one Indian airport where you can take a connecting flight. Airport infrastructure has never been designed,” he said.
However, Patel expressed hope and said Indian carriers were very competitive and promised India would have six world-class aviation hubs soon.
Mallya wants FDI in domestic aviation industry
`Cut prices or people will hoard fearing worst`
Do you expect air fares to be slashed? Comment
He also insisted efforts must be made to bring down air fares. “I will urge the entire aviation industry whenever some help is given then it should reflect in some form like lower airfares,” he said.
Mallya: My beer’s doing good
Speaking at the Summit, Kingfishers and UB Group Chairman Dr Vijay Mallya said that fares can only be reduced if ATF is listed under the declared good category.
“We can only reduce fares if ATF is put under the declared goods category that way there will be a uniform four per cent tax on it and so we will be able to reduce fares without worrying about external causes,” he said.
He also said despite the economic downturn, consumption of his beer continue to grow robustly.
Goyal: Tough time, temporary setback
Also speaking at the summit Jet Airways chairman Naresh Goyal said the aviation industry at present was going through a bad phase and the phase will continue for the next one or two years.
"The airline industry is clearly very sick for the next year or two in my opinion we will see airlines coming under much more pressure."
Goyal also said that decison makers have to make important choices now to make India a market leader.
And though he is convinced that the present tough time is a temporary setback, he is hopeful that the industry will bounce back with government support.
...
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The best way to de-risk your portfolio is to invest through a mutual fund. This is the advice that everyone has given to the small investors in the past two years. Even Finance Minister P. Chidambaram has reiterated this several times. But after the current stock market crash has trashed even the blue chips, the Money Today-Value Research list of India’s Most Wanted Stocks over the past two years proves that this is a widely accepted fable. Here is the new set of investment truisms.
1. Experts can get it wrong
Beyond the fundamentals, the art of stock-picking is based on luck. It’s purely by chance that fund managers discover value picks. Ten months ago, ICICI Bank was being added to fund portfolios at Rs 1,200. But recently, it was down to Rs 400. Similarly, IT bellwether Infosys was the preferred choice of funds at Rs 1,768 and, later, it was available for Rs 1,320 despite the fact that dollar had strengthened from Rs 40 to Rs 47 during the same period. One would have assumed that the fall of the rupee would have increased Infosys’ valuation since a stronger dollar benefits export-oriented firms. A similar trend has been witnesssed in mid-cap and small-cap stocks. Crompton Greaves was picked for Rs 129 when the Sensex touched 10K the first time, and is taken for Rs 232 now that the Sensex has touched 10K again.
2. Funds have limited choices
Like any small investor, mutual funds too have a limited stock universe. Although there are 5,103 listed stocks on the BSE, and the mid-cap and small-cap indices comprise 274 and 494 companies, respectively, the portfolios of actively managed funds don’t go beyond 100 stocks. It amounts to less than 2% of stocks that fall under the fund managers’ radars.
3. Favourites can change
Today, in a falling market, when the Sensex is at 10,000 levels, 14 mutual funds hold Ipca Labs with a total exposure of Rs 234 crore. Two years ago, in a booming market, when the Sensex had touched 10K, this small-cap stock was held by nine funds with an exposure of Rs 125 crore. So, even the experts have their flavours of the month, just like you and I do. While only 89 funds had the most preferred Reliance Industries in their pickings when the Sensex first touched 10K, it now finds significant holdings in 160 funds.
4. Funds can own unknown duds
Ever wondered why relatively unknown stocks such as BS Refrigerators, GCI Solutions and Mukerian Papers get into an expert’s portfolio? The answer: even mutual funds can purchase duds and make wild investment decisions. And these are only a few of the misplaced bets from the list of 100 stocks that several prominent mutual funds hold currently.
5. Mid-caps aren’t necessarily the future large-caps
Even attractive mid-cap stocks can turn out to be mistakes. Aditya Birla Nuva, a mid-cap company, was promoted to the large-cap category in December 2007, with mutual funds holding stocks worth Rs 1,382 crore. Three months later, it was back to being a mid-cap, and mutual funds’ combined holding had dwindled down by 34% to Rs 903 crore. Another mid-cap, Divi’s Lab, was relegated to the small-cap status by the end of March 2008 after the stock had taken a huge beating on the back of a sustained fall in the markets after January this year.
6. Mutual funds also follow the herd
Everyone, even the so-called smart and savvy investor, likes to be a part of the crowd. If you, as a small investor, buy what the funds buy, the funds go after stocks that their competitors own. In the MF universe, 60 funds have Reliance Industries as their most wanted stock. The top three holdings of over 100 MFs are part of the top five most wanted stocks.
7. Checking MF portfolios can be a good bet
We get to know what a fund has purchased after a lag of nearly one month, as new additions in a mutual fund portfolio are released in the first week of every month. But if you invest in these new stocks even at that stage, you are likely to earn good returns from them.
Money2day.............
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The 50 Rules For Investing Success---
1. An attempt at making a quick buck usually leads to losing much of that buck.
2. If stocks in general don’t seem cheap, stand aside.
3. Buy and hold doesn’t always work.
4. Never throw good money after bad investments (don’t buy more of a loser).
5. Cut your losers, and let your winners ride.
6. If the investment sounds too good to be true, it is.
7. Don’t fight “the tape” (the trend).
8. Don’t fight the Fed (interest rates).
9. Most stocks that fall under $5 rarely see $10 again.
10. The best hot tip: there is no such thing as a hot tip.
11. Don’t fall in love with your stock; it won’t fall in love with you.
12. Don’t have more than 3% at risk in any one position.
13. The trend is your friend until the end.
14. Trading options often leads to a quick trip to the poorhouse.
15. Bear-market rallies are often violent; giving the illusion the bull is back.
16. Low-priced stocks don’t double any faster than high-priced ones.
17. Valuations don’t matter in the short run.
18. When a stock hits a new high, it’s not time to sell. Something is going right.
19. Have a rose garden portfolio (don’t trim your roses while your weeds fester).
20. It takes courage to be a pig (don’t settle for taking 10% profits).
21. Not selling a stock for a gain, simply because you’re afraid of the taxes, is a bad idea.
22. Avoid limited upside, unlimited downside investments.
23. When all you’re left with is hope, get out.
24. Don’t keep losing money just to “prove you are right.” Nobody cares.
25. Forecasts are useless.
26. Have patience and stick with your discipline.
27. When it’s time to act, don’t hesitate.
28. Expert investors care about risk, novice investors shop for returns.
29. Don’t lose money.
30. You can learn more from your bad moves than your good.
31. A rising tide raises all ships, and vice versa, so assess the tide, not the ships.
32. Stocks fall more than you think and rise higher than you can possibly imagine.
33. Very few people have had great success short selling, even in bear markets.
34. You can’t know everything about everything.
35. Since you can’t know everything, seek out specialists who know their areas.
36. If a company’s sales are shrinking, the business isn’t growing anymore.
37. Real estate cycles are not the same as stock market cycles.
38. Investing in what’s popular never ends up making you any money.
39. Know your investment edge, and don’t stray too far from it.
40. Bear markets begin in good times. Bull markets begin in bad times.
41. Buy value - stocks that are priced less than their underlying assets are worth.
42. Neglected sectors often turn out to offer good values.
43. There’s usually only one reason corporate insiders buy stock.
44. Don’t miss a good one by being too concerned with the exact price you pay.
45. Avoid popular stocks, fad industries and new ventures.
46. Buy shares in businesses you understand.
47. Try to buy a stock when it has few friends.
48. Be patient: don’t be rattled by fluctuations.
49. Mutual funds underperform the averages over the long run. Buy index funds instead.
50. If you don’t understand the investment, don’t invest.
[accumulated from various site]...
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Put and call writing is left to the experts, those who can trade at the speed of the market - a trader`s terminal.
It is safe to just buy puts (if u feel market is heading south) and calls (if u feel they are heading north).
When the markets attain your target numbers, you just sell the puts or calls - what ever u had originally bought.
lets say you pad Rs 95 for Nifty 3000 call when market is at 2920, and in 3 days nifty runs up to 3100. You calls would be worth at least 100 (intrisinc value of the option - also know as in the money)
When u bought the 3000 call, the market was at 2910 - so all of the Rs 95 went towards premium(only time value - there was zero intrisinc value at that time).
Now the 3000 call is 100 in the money plus at lest 90 in premium (it depends on time remaing for options to expire, it loses value rapidly closer to expiration).
So the call that you paid 95 is now worth 190 - you can sell this and book profit of 95 x 50 on each contract.
I am an options writer . I do just the opposite of the buyers. I feel the market is going to go up - from 2920 to 3100 - What do I do?
I write puts (or sell - both mean the same).
I will sell the 3000 put which fetches Rs 200 (80 in the money plus 120 time value)
My acct will be credited 200 x 50 per contract. Market goes to 3100 - and now the 3000 put is out of the money - no intrisinc value there - just the time value - so that would be approx 100.
I buy back the call that i sold or wrote - i would pay 100 x 50
I was credited 10000 when i wrote or sold and now i pay 5k to buy it back. The difference of 5k is my profit.
The risk here is unlimited - because, if I am wrong - which happens often - the market falls - say to 2700.
Now the puts that I sold or wrote are worth at least 300 intrisinc value (in the money) plus time value - say about 80.
I would have to pay 380 to buy back the sold or written puts.
380 x 50 = 19000 and i got 10000 when i sold or wrote it - my loss is 9k. if nifty had fallen to 2500 - my loss wud be bigger.
Whereas, in your case - u bought the 3000 call option by paying 95 x 50, if nifty goes up - u make money
if it goes down - u lose money - but your loss is restricted to the premium you paid - 95
Assuming Nifty goes to 200 - you call option wud be worthless - the max loss 95 x 50 - what ever u paid
hope it is clear now
there is no difference between writing or selling - both mean same.
one clue:
Calls are cheaper after the markets decline - Puts are cheaper after the market has had a run up
Idea is the assess the next move - like i feel we are in for a gap up open irrespective of what happens in asia or europe - Nifty made a bullish engulfing on the candlestick chart and inside day on the bar chart.
I bought the 2700 and 2800 calls late fri evening around 310pm. I felt markets wud make the bullish engulfing even if it sold off the last 20 mins.
If market gaps up - the call premiums wud jump up too - since options expire in 3 days, i am looking to exit on the gap up or at least have a HARD STOP LOSS if the gap is substantial. We may run up about 80 - 100 points - perhaps
unless we have news that a top bank has gone under, (like lehman bros or fannie or freddie).
That is why i luv charts - it gives us an idea when there is divergence in the market - we can play for the rebound or fall - what ever the case may be
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now crude will find support and will pick up and can go up to 61$ to 75$...
In reply to:
Crude trading at USD 50/bbl
Posted by : MMB Messenger
Crude trading at USD 48.25/bbl of a low in the earlier Asian markets today have just regained that USD 50/bbl at this point in time. Gold gained 2% yesterday and is up 2% at this point in time. Silver prices are nearly 3% on the higher side.
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Sri Bhave the market regulator pointed out that the current global financial meltdown was a crisis in the credit market and not in equity markets and stressed the need for introducing more exchange-traded products to bring about transparency in their transactions.
On the unprecedented slump in the country’s bourses since October, Mr. Bhave made it clear that the recent meltdown was not owing to any market manipulation or a scam. The prime cause was the fact that those FIIs (foreign institutional investors) who had borrowed huge amount of funds for investment were leaving the markets even as long-term investors such as pension funds and retail investors were actually picking up stocks. “We have not found anything in the market that would give us suspicion that something had seriously gone wrong with the market itself,” he said.
Elaborating further, Mr. Bhave noted that only leveraged FIIs such as hedge funds were going out of the market while pension funds and university funds were buying stocks. “Equity is going into the hands of people who have patience,” he said. According to SEBI’s analysis of the market, if four FIIs sold stocks during September 1 to November 14 this year, three others bought them during the same period which indicated minimal net selling.
The net stock sale by FIIs during September 1 to November 14 was worth Rs. 22,000 crore, while the sale by brokers was worth another Rs. 700 crore on proprietary accounts. On the contrary, the net purchase of stocks by mutual funds was worth Rs. 1,000 crore while domestic institutional investors and others, including retail investors, accounted for another Rs. 16,000 crore and Rs. 5,600 crore, respectively.
The market regulator pointed out that smart investors were, in fact, picking up stocks in the current slump. “If you think Indian investors don’t have money, if you think Indian investors are running away, think again. There are some smart guys sitting out there, who think that this market is giving valuations,” he said.
Bhave, however, had a word of caution for retail and institutional investors. While he warned retail investors against borrowing for investing in equities and advised them to keep aside funds for emergency situations, he also cautioned institutional investors against overleveraging to levels that lead to systemic risks in the market.
“Where the system is getting overleveraged and the risk becomes too great for financial markets, we as regulators must intervene and tell them to bring it down,” he said.
For information,with regards
rvkk41...
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Usually crude and gold prices go side by side.
Wat is happening this time?
Is it advisable go short in crude at the moment as already so much blood shedding has happened.
Is it possible for crude producing countries to reduce its production?...
In reply to:
Crude trading at USD 50/bbl
Posted by :
nicknamechanged75
crude will come down to usd 30/bbl
