" My Thoughts & Feelings About The Stock Market "

Just to add my own thoughts about the last post will be simple and to the point, firstly be careful in these turbulent times about trusting anyone telling you how to make a quick buck. They become millionaires by people who believe their chat and invest in their way of spending your money.Many times l have had a conversation with people whose first words are if only l had listened to my heart and not my head, then l would not be coming to you to help me out with the debts l now have accrued through gambling on the stock market.

Some people reading this post will disagree with my word " gambling " but this is what it is in a cocked hat a gamble as no one can calculate risk to the point of finality, there is always a risk and you will find it hidden in the small print. So if anyone tells you this is a certainty or you cannot lose you can but be assured as all wall street bankers will never tell you.

They make money whether you make or lose money as they are playing with your money on their                   " Monopoly Board of Life " not your`s.

My Profiles  

The stock market and you!

The stock market and you!:

Stock markets are in the news everyday and they make an excellent place for spiritual learning Whenever you think or talk about it or invest in the stock market, you would not normally look at the spiritual perspective Stock markets are about buying and selling, profit and loss, bulls and bears and anticipation While people enter the stock market primarily with the intention of making money, there is a spiritual side to trading, and someone who is receptive can learn a lot of lessons about life here.



As in life, the only certainty in stock markets is uncertainty and unpredictability Every morning, although we have a broad idea of how our day is likely to be, we cannot predict with surety about events that might happen or not happen during the day Similarly, every stock trader and broker knows that the behaviour of the markets cannot be predicted with centum confidence While the general trends might be predicted or anticipated, what eventually happens when the markets open and trading begins, is known only minute by minute.

This is true of our lives too, where life flows moment to moment; we can only live in the present Life – which is enmeshed in duality, with its ups and downs, victories and losses The same is true of stock markets, where investors move from happiness to sorrow and from ecstasy to dejection, with cyclical regularity As in life, with stocks too, no one is a permanent winner or loser Change is the only constant Stock markets and life are about being in the present moment, making continuous assessments of the current situation, and then taking whatever course of action seems right to us, at that instant.

And these actions might bring about results which are acceptable or unacceptable One must have the maturity to accept both the good and the bad with equanimity. Life is all about putting in our best efforts and then surrendering to a higher authority or power This letting go is often required in investing too where, after having made a decision, one should not continuously be thinking about it Having done our job, we must let go and let existence take over, and give us whatever returns or rewards Learn to accept that which you cannot change.

At the same time, one cannot afford to be callous or careless, as these qualities always lead to trouble. Life and the stock markets are ruled by two emotions – greed and fear Depending on mindsets of individuals, some might veer more towards greed, while many might act predominantly from fear What is needed is a healthy balance of desire and caution; else we either get too greedy or are too scared Extreme greed and extreme fear lead more to losses than profits and are major causes of misery and unhappiness.

This guest column has been contributed by Pudugram Vaidyanathan.

Source: http://www.speakingtree.in/view-article/The-stock-market-and-you

Dow/Gold Ratio Lowest Since 1987 Crash -Whay Your Next Move? - Wall Street - eWallstreeter

Dow/Gold Ratio Lowest Since 1987 Crash -Whay Your Next Move? - Wall Street - eWallstreeter

The next move for Gold is upwards and how far well looking at all market indicators somewhere around 2,100 a troy oz would seem about right, then if it was me sell. The question is WHY ? more soon.

RBI’s role in policy rates and inflation!

RBI’s role in policy rates and inflation!:

RBI raised the policy rates by 25/50 basis points. This is the most familiar statement in media for last couple of months. The role of RBI seems to have increased recently since India started experiencing major inflationary pressure on her economy.

What exactly RBI intends to achieve by raising policy rates, also known as repo and reverse repo rate. We will make some sense of these moves by RBI and discuss the implication of it.

Monetary function

One of the functions of RBI is monetary policy structuring and implementation. The core focus of monetary policy is to increase or reduce the money supply in the market. The only way to do it is to increase or reduce the repo and reverse repo rate. Repo rate is the rate at which banks borrow money from RBI and reverse repo is the rate at which RBI borrows money from the bank.

Now what does RBI intend to achieve by changing these rates. Let’s look at how increasing and reducing the repo and reverse repo rates affect the market. If the policy rates are higher, the cost of money for banks is high. This means that the banks will charge higher interest rate for loans. The banks will also provide high rates to depositors.

If the depositors get good rates, this will encourage people to deposit money in banks. People will prefer saving because of the good returns that banks promise. This will reduce money in the market thus impacting consumption.

Similarly, when the banks start charging high rates for lending, this will discourage people from borrowing. People will postpone their purchases of home, vehicles, and other items because of high lending rates on their home loans, personal loans and car loans. This will again reduce money supply thus impacting consumption.

RBI’s objective vis-à-vis policy rate

RBI intends to do the same thing by increasing the repo and reverse repo rates. The money supply will be reduced and hence consumption will go down. If the consumption goes down, producers will reduce the price of goods to attract buyers to increase consumption. This will reduce the overall prices of commodities and other goods.

Since India is facing high inflation for last couple of years, RBI’s chief objective is to reduce the inflation by reducing money supply in the market. This explains why RBI increased the policy rates 11 times since early days of 2010. Price stability has become the main objective for RBI.

Growth versus Inflation debate

The unhindered increase in policy rates has resulted in reduced growth projection of the Indian economy. As consumption goes down, producers do not see much incentive in producing more. This impacts the overall gross domestic products. Hence the growth rate goes down as a consequence of RBI raising the policy rates.

Many experts have warned that the move of RBI is going to have little or no impact on inflation because inflation is caused by supply side constraints and increasing oil prices. RBI has no control over both these factors. This argument does sound credible as we still do not see ease in prices despite so many increases in the last few months.

The other school of thought says that the inflation has been at least capped and has not been allowed to go further up because of RBI’s move.

It is really difficult to say who is right as these are post facto observation. On hindsight, we can conclude whether the intended change was effected. However, when you have to plan keeping future in mind, nobody can be sure of the effect.

Finally

Slower than expected growth in developed economies has reduced commodity prices across the world. Oil has come down. This will ease the inflation in India too and take off some of the pressure from RBI. Hopefully, RBI will not have to increase the policy rates further.