The ubiquitous unintentional leverage

Have you ever wondered what the net return from a real estate investment is? I bet you did at some point like I did at multiple junctures. Armed with google, I searched the net but in vain. The closest analysis I could find is that for lumpsum investment, like this article. But we are not HNIs and hence have to opt for loan. What is the net return when you purchase a real estate through EMIs is the unanswered question and here is my attempt to find an answer for this.

Continue reading “The ubiquitous unintentional leverage”

Sometimes, being a sheep helps..

Common sense is not always your friend. Sometimes you just need to move with the flow.

When your car slides, the best option is to accelerate along the direction of slide and gain control.When you fall at speed, its best to support the momentum than to stop it. Same is the case when you are trading the stock markets.
Continue reading “Sometimes, being a sheep helps..”

Yellow is in; again..

Its not unusual for fashion to tred a cyclic path. Looks like investments too are following suit. The lure for the yellow metal is growing more intense day by day.

Gold was one of the earliest means to represent wealth. Then came the currency, and along came a slew of financial products; some as exotic as the Galapagos. However, few products came with the fine print “Handle with care”. Some products such as the “Credit Default Swaps” were powerful enough to shake few economies. These days, fear of bond yields sky rocketting is not difficult to find. And faith in the currencies is begining to falter. Few veterans went so far, that they speculated a war of currencies. In the show, “Who is the next Global Idol”, first was the Euro’s dance of defence. Then the Dollar’s. And backstage was the yellow metal’s dance of victory. Continue reading “Yellow is in; again..”