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latikav
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"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
Also see latikav’s rated messages
13 Oct 2008 10:35
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Stock-picking, or even deciding whether to stick with equities or not, has never been more difficult. However, if you are still looking at stocks, there are four things you have to avoid. In fact, these can come handy at all times:
(1) Don’t give in to market moods
Stocks are not about growth and profits of corporates alone. They also reflect the mood of the economy and investors. Due to this, markets have a tendency to slip into the extremes of both downside and upside.
When the Sensex was at 21,000, ‘value’ was the least significant factor for many investors as they wanted to be part of the euphoria. As a result, many invested in stocks which had three-digit PE (price to earnings) ratio. The situation now is completely different with few stocks commanding PE ratios of more than 20.
Still, if you have invested in equity with a long-term perspective, and if you are not in need of funds, don’t resort to selling in line with market mood. Stay calm and focused.
(2) Don’t drop long-term goals
The phrase ‘long-term’ has been acquiring a new meaning these days. Investors who entered equity to build corpus over the long-term have changed tracks just because the markets have come under pressure.
If you are an investor with a pre-defined asset allocation towards equity, stick to your portfolio.
Also, remember that equity may have provided 40-50 per cent returns at regular intervals, but the returns actually average out to 15-18 per cent over the long-term due to intermittent corrections.
Still, annualised returns of more than 15 per cent over a period of 10-20 years help beat inflation and build a corpus for long-term needs.
3) Don’t just buy to ‘average’
A lot of people around you must be talking about this being an opportunity to ‘average’ out your share price. But you can’t afford to fall in love with a stock.
If you have invested in a momentum stock hoping to get quick returns, and if that stock has fallen below your purchase price, booking losses may be a better option than going in for additional purchases.
Reducing the average price through fresh purchase may be a good strategy under normal circumstances, but not in the present bear market.
(4) Don’t take stocks for short-term
Equity should never be an option for short-term goals, irrespective of the market mood. The stock markets are always volatile and can wipe away a good portion of capital in the short-term.
Besides capital, equity requires a staying power and, hence, is not the best option if you are dependent on the corpus in the short-term.
Courtesy: Mumbai Mirror
...
(1) Don’t give in to market moods
Stocks are not about growth and profits of corporates alone. They also reflect the mood of the economy and investors. Due to this, markets have a tendency to slip into the extremes of both downside and upside.
When the Sensex was at 21,000, ‘value’ was the least significant factor for many investors as they wanted to be part of the euphoria. As a result, many invested in stocks which had three-digit PE (price to earnings) ratio. The situation now is completely different with few stocks commanding PE ratios of more than 20.
Still, if you have invested in equity with a long-term perspective, and if you are not in need of funds, don’t resort to selling in line with market mood. Stay calm and focused.
(2) Don’t drop long-term goals
The phrase ‘long-term’ has been acquiring a new meaning these days. Investors who entered equity to build corpus over the long-term have changed tracks just because the markets have come under pressure.
If you are an investor with a pre-defined asset allocation towards equity, stick to your portfolio.
Also, remember that equity may have provided 40-50 per cent returns at regular intervals, but the returns actually average out to 15-18 per cent over the long-term due to intermittent corrections.
Still, annualised returns of more than 15 per cent over a period of 10-20 years help beat inflation and build a corpus for long-term needs.
3) Don’t just buy to ‘average’
A lot of people around you must be talking about this being an opportunity to ‘average’ out your share price. But you can’t afford to fall in love with a stock.
If you have invested in a momentum stock hoping to get quick returns, and if that stock has fallen below your purchase price, booking losses may be a better option than going in for additional purchases.
Reducing the average price through fresh purchase may be a good strategy under normal circumstances, but not in the present bear market.
(4) Don’t take stocks for short-term
Equity should never be an option for short-term goals, irrespective of the market mood. The stock markets are always volatile and can wipe away a good portion of capital in the short-term.
Besides capital, equity requires a staying power and, hence, is not the best option if you are dependent on the corpus in the short-term.
Courtesy: Mumbai Mirror
...
13 Oct 2008 10:23
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On Friday, while the ticker tape blinkered in red, certified financial planner Gaurav Mashruwala was working the phone all day, reassuring his clients.
His advice : If there is no change in your fund requirements in the immediate future, then just sit tight.
However, if you are in one of two situations, you should get out of the falling markets, says Mashruwala.
First, if you have an outstanding loan. You don’t need to be losing money while simultaneously paying high interest rates.
The second, if you have speculated in penny stocks, it is time to cut your losses and jump if your’e lucky.
Rather than succumbing to the widespread panic and hysteria , most financial advisors are telling their clients to hold on, stay calm and maybe even start shopping for some good bargains.
While markets go down, they also go back up, is the general sentiment.
Says Sujata Kabraji, a wealth manager for high net worth clients, “This is a good time to slowly start buying. I would start investing about 25% of what liquid cash I have and then wait and watch how global events pan out. If there is a further drop, I would pick up again, because I do believe that our economy is in better shape than western economies.’’
In fact, Kabraji started picking up some value stocks on Friday itself, for some of her clients.
She has an agreement with some of her clients to invest a proportion of their money in index funds every time the market falls by a certain percentage.
She added, "at this point, I would focus on buying only large-cap stocks for several reasons. One, they have weathered lots of storms over the years; second, given the global scenario and the credit crunch, mid-cap stocks may not be able to grow the same way they were doing earlier and that will affect their market price."
“At times like this, I like to quote Rudyard Kipling who wrote, in the famous poem, ‘If’ , that if you can keep your head when all about you are losing theirs, you will come out a winner.”
Says wealth manager Hemant Rustagi, “Someone who has been investing should continue to do so. It may not look very good right now, but the markets are not going to remain like this. It may take some time to recover. So what we are advising our investors is, do not change your asset allocation because the markets are bad. There is always a tendency at times like this to move money to a safer investment like debt or fixed deposits , but that is not right. If stocks are of good quality and you believe in them, there is no reason to stop investing in them.”
He adds, “You can’t be shifting your assets every now and then. Just as you have seen the markets go down, they will also go up.”
ET......
His advice : If there is no change in your fund requirements in the immediate future, then just sit tight.
However, if you are in one of two situations, you should get out of the falling markets, says Mashruwala.
First, if you have an outstanding loan. You don’t need to be losing money while simultaneously paying high interest rates.
The second, if you have speculated in penny stocks, it is time to cut your losses and jump if your’e lucky.
Rather than succumbing to the widespread panic and hysteria , most financial advisors are telling their clients to hold on, stay calm and maybe even start shopping for some good bargains.
While markets go down, they also go back up, is the general sentiment.
Says Sujata Kabraji, a wealth manager for high net worth clients, “This is a good time to slowly start buying. I would start investing about 25% of what liquid cash I have and then wait and watch how global events pan out. If there is a further drop, I would pick up again, because I do believe that our economy is in better shape than western economies.’’
In fact, Kabraji started picking up some value stocks on Friday itself, for some of her clients.
She has an agreement with some of her clients to invest a proportion of their money in index funds every time the market falls by a certain percentage.
She added, "at this point, I would focus on buying only large-cap stocks for several reasons. One, they have weathered lots of storms over the years; second, given the global scenario and the credit crunch, mid-cap stocks may not be able to grow the same way they were doing earlier and that will affect their market price."
“At times like this, I like to quote Rudyard Kipling who wrote, in the famous poem, ‘If’ , that if you can keep your head when all about you are losing theirs, you will come out a winner.”
Says wealth manager Hemant Rustagi, “Someone who has been investing should continue to do so. It may not look very good right now, but the markets are not going to remain like this. It may take some time to recover. So what we are advising our investors is, do not change your asset allocation because the markets are bad. There is always a tendency at times like this to move money to a safer investment like debt or fixed deposits , but that is not right. If stocks are of good quality and you believe in them, there is no reason to stop investing in them.”
He adds, “You can’t be shifting your assets every now and then. Just as you have seen the markets go down, they will also go up.”
ET......
13 Oct 2008 10:14
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FM comments---------------- Stocks opened sharply higher Monday after re-assuring comments on the market situation by finance minister P Chidambaram on the health of
Indian economy.
He expressed confidence that India can weather the storm of financial crisis blowing across the world saying the country`s economic fundamentals and the banking system were strong.
National Stock Exchange`s benchmark Nifty climbed 88.75 points to 3368.70.
Bombay Stock Exchange`s 30-share Sensex surged 344 points to 10872 from Friday`s close.
Asian markets were on recovery path Monday after Australia guaranteed bank deposits and European leaders agreed to support lenders in a global effort to end the credit crisis.
Hang Seng rose 0.31 per cent, Straits Times added 0.52 per cent and S&P/ASX climbed 3.68 per cent. Japanese markets are closed for a national holiday.
Wall Street futures indicated a sharp rebound ahead of the opening bell on Monday. Dow Jones Industrial futures rose 235 points, or 2.8 per cent, to 8,605. Standard & Poor`s 500 futures jumped 19.25, or 1.50 per cent, at 1,309.00; and Nasdaq-100 futures added 22.10, or 2.48 per cent, at 913.10.
ET.....
Indian economy.
He expressed confidence that India can weather the storm of financial crisis blowing across the world saying the country`s economic fundamentals and the banking system were strong.
National Stock Exchange`s benchmark Nifty climbed 88.75 points to 3368.70.
Bombay Stock Exchange`s 30-share Sensex surged 344 points to 10872 from Friday`s close.
Asian markets were on recovery path Monday after Australia guaranteed bank deposits and European leaders agreed to support lenders in a global effort to end the credit crisis.
Hang Seng rose 0.31 per cent, Straits Times added 0.52 per cent and S&P/ASX climbed 3.68 per cent. Japanese markets are closed for a national holiday.
Wall Street futures indicated a sharp rebound ahead of the opening bell on Monday. Dow Jones Industrial futures rose 235 points, or 2.8 per cent, to 8,605. Standard & Poor`s 500 futures jumped 19.25, or 1.50 per cent, at 1,309.00; and Nasdaq-100 futures added 22.10, or 2.48 per cent, at 913.10.
ET.....
13 Oct 2008 08:18
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12 Oct 2008 11:32
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11 Oct 2008 15:24
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Right time for NRIs to invest in India: Federal Bank-------------DUBAI: Overseas Indians should take advantage of favourable exchange rates arising out of the current global financial crisis and invest in India,
says M Venugopal, CEO and managing director of India`s Federal Bank.
"I will ask NRIs (non-resident Indians) to take advantage of the current situation of high exchange rates and interest rates," Venugopalan said in Qatar.
Venugopalan, who is on a tour of the Gulf, said that banks in India were safer in the face of the global credit crunch as these had "insignificant" exposure to the US markets and did not have a large presence of structured products, which had compounded the crisis in the West.
It was advisable to invest in non-resident ordinary (NRO) deposits or relatives` domestic deposits as rates were higher now, the Gulf Times quoted him as saying.
The rupee has fallen to over 48 levels against the dollar as foreign institutional investors took out money from the Indian stock markets in the face of the crisis.
According to Venugopalan, at present NRO deposits of less than one year fetched an annual interest of 10.6 percent and those of less than three years got 10.5 percent, while non-resident external (NRE) savings deposits earned only a little over four percent.
"Even after tax is factored in, the return on NRO deposits is attractive (the net interest rate will be 9.5-9.6 percent)," the Federal Bank chief said.
Federal Bank has an NRI customer base of 400,000 with deposits of over Rs 56 billion or 20 percent of its total. In a separate interview to the Kuwait Times, Venugopalan said that there was a serious liquidity crunch in India.
"This is mainly because of the non-availability of dollar. Foreign funds are exiting India following the global credit crisis and there is no perceptible cash inflow," he was quoted as saying.
He, however, added that Federal Bank was not affected by the global financial turmoil as its shares were widely held. "An individual shareholder cannot hold more than five percent of the bank`s shares," Venugopalan said.
According to him, overleveraging by central banks across the world fuelled the sub-prime crisis, which started in the US, spread to Europe and then engulfed the rest of the world. But the efforts by these banks now have helped contain the crisis by a large extent from spreading further.
In India, he said, the Reserve Bank of India`s (RBI) decision to curb the liquidity of banks by raising cash reserve ratio (CRR) has helped it in regulating lending by Indian banks.
Venugopalan`s comments came even as remittances from the large expatriate Indian community in the Gulf saw a significant rise over the last one month.
ET.......
says M Venugopal, CEO and managing director of India`s Federal Bank.
"I will ask NRIs (non-resident Indians) to take advantage of the current situation of high exchange rates and interest rates," Venugopalan said in Qatar.
Venugopalan, who is on a tour of the Gulf, said that banks in India were safer in the face of the global credit crunch as these had "insignificant" exposure to the US markets and did not have a large presence of structured products, which had compounded the crisis in the West.
It was advisable to invest in non-resident ordinary (NRO) deposits or relatives` domestic deposits as rates were higher now, the Gulf Times quoted him as saying.
The rupee has fallen to over 48 levels against the dollar as foreign institutional investors took out money from the Indian stock markets in the face of the crisis.
According to Venugopalan, at present NRO deposits of less than one year fetched an annual interest of 10.6 percent and those of less than three years got 10.5 percent, while non-resident external (NRE) savings deposits earned only a little over four percent.
"Even after tax is factored in, the return on NRO deposits is attractive (the net interest rate will be 9.5-9.6 percent)," the Federal Bank chief said.
Federal Bank has an NRI customer base of 400,000 with deposits of over Rs 56 billion or 20 percent of its total. In a separate interview to the Kuwait Times, Venugopalan said that there was a serious liquidity crunch in India.
"This is mainly because of the non-availability of dollar. Foreign funds are exiting India following the global credit crisis and there is no perceptible cash inflow," he was quoted as saying.
He, however, added that Federal Bank was not affected by the global financial turmoil as its shares were widely held. "An individual shareholder cannot hold more than five percent of the bank`s shares," Venugopalan said.
According to him, overleveraging by central banks across the world fuelled the sub-prime crisis, which started in the US, spread to Europe and then engulfed the rest of the world. But the efforts by these banks now have helped contain the crisis by a large extent from spreading further.
In India, he said, the Reserve Bank of India`s (RBI) decision to curb the liquidity of banks by raising cash reserve ratio (CRR) has helped it in regulating lending by Indian banks.
Venugopalan`s comments came even as remittances from the large expatriate Indian community in the Gulf saw a significant rise over the last one month.
ET.......
11 Oct 2008 10:48
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