Posts Tagged ‘Stock Market’

Welcome to the ‘Stock’ Market!

I got this content in an email forward. Thought I would share the same here.

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for Rs10. The villagers seeing that there were many monkeys around, went out to the forest and started catching them. The man bought thousands at Rs10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at Rs20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would buy monkeys at Rs50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him. In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs35 and when the man returns from the city, you can sell it to him for Rs50.’

The villagers squeezed up with all their savings and bought all the monkeys.Then they never saw the man nor his assistant, only monkeys everywhere!! !

Welcome to the ‘Stock’ Market!


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If you purchased $1,000 of Delta Airlines stock 1 year ago, you would have $49 today.

If you purchased $1,000 of AIG stock 1 year ago, you would have $33 today.

If you purchased $1,000 of Lehman Brothers stock 1 year ago, you would have $0.0 today.

But, if you purchased $1,000 worth of beer 1 year ago, drank all the beer, returned the aluminum cans for a recycling refund, you would have $214.

Disclaimer: Investments are subject to market (and now, health) risks. Please considered this as a pure email forward!

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Today a news popped up, the Mutual Fund market is going to collapse. MFs were always considered a safer bet for investment among all the high risk ones. The assumption is that there are people who are putting stakes to manage your investments. But, no longer true!

It’s not even a month before it all began. During one of the classes of our orientation came the news of the great Lehmann collapse. Since then a string of events in the finanical world (bubble burst – remember dotcom burst) have brought upon a never seen before liquidity crisis. The world is panic stricken and everybody has stopped cribbing about the rising crude prices (they have dropped now actually) and inflation.

Many of my friends have opted for a SIP (or Systematic Investment Plan) and I was really surprise to hear them talk about losses. I have stayed away from MFs only because I believe I can earn more by investing directly into the stock exchange (of course even I have lost money). Every time a stock falls, I feel encouraged and buy more – only needing to buy even more. The colors of the week are RED,

Despite this, we always find time to talk about cricket. Sloppy fielding, Australian (cribbing) media, Spinners vs. Pacers, Sehwag…

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