The Stock market crash and the Stock market bubble An overstated bear market, that tends to be associated with falling investor confidence and alarm selling, can show the way to a market crash associated with a recession. An blown up bull market, on the other hand, fueled by overconfidence and / or speculation can lead to a market bubble — characterized by an tremendous inflation of the p...
In a secular bear market, the primary bull markets are occasionally shorter than the primary bear markets and rarely pay compensation for the real losses of the primary bear markets occurring during this extended cycle. For instance, in the 1966–82 secular bear market in stocks, there was barely any nominal loss. But in real terms the loss was distressing. (In the past most housing recessi...
Secondary trends are short-term changes in price track against a primary trend. They generally last between a few weeks and a few months. Whether a trend is a secondary trend, or the commencement of a primary trend, can only be identified once it has either ended or has exceeded the extent of a secondary trend. A turn down in prices during a primary trend bull market is called a market correctio...
Introduction A Market trend is the track in which a financial market is moving. Market trends can be divided into primary trends, secondary trends (short-term), and secular trends (long-term). This standard incorporates the thought that market cycles occur with regularity and persistence. Market trends are described as sustained movements in market prices over a period of time. The terms bull m...
Mutual funds offer many benefits over investing in individual stocks. For example, the transaction costs are divided among all the mutual fund shareholders, which allows for cost-effective diversification. Investors may also advantage by having a third party (professional fund managers) apply expertise and dedicate time to manage and research investment options, although there is dispute over wh...
DSP Merrill Lynch Mutual Fund's Micro Cap Fund is likely to inspire many replicas in the near future. "In all probability this is going to be the new topic. Fund houses are probably to lap it up," says an industry analyst. As a result what is micro-cap scheme? Well, let us take a glance at how DSP ML Micro Cap really works? To commence with, the scheme will invest in stocks which are not part o...
Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you understand the investment, the risk it carries, and how that risk relates to your investment goal. For example, if you are inve...
Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even small changes in the inflation may make a massive difference in the amount of money you have over t...
No. Bank deposits Other investments 1 Bank deposits give an almost assured, fixed and uninterrupted returns The returns from equities, mutual funds are not assured. The company deposits and debentures may stop servicing of interest any time due to losses. 2 It is easy to choose a deposit scheme at a Bank as they are simple and can ...
A Credit Union is a cooperative financial institution that is owned and controlled by its members. Credit unions differ from other financial institutions (banks, savings and loan). In this the members who have accounts in the Credit Union are the owners of the Credit Union. Policies of the Credit union governing interest rates and other matters are set by a Board of Directors elected by and from...
Generally banking that includes investment services in addition to services related to savings and loans are called universal banking. However in practice the term 'universal banks' refers to those banks which offer a wide range of financial services, beyond commercial banking, investment banking, insurance etc. Universal banking is a combination of commercial banking, investment banking and a r...
A Central Bank or reserve bank, by definition, is the organization within a particular country or union of countries that regulates all of the currency supplies and related policies for that particular area. A Central Bank will perform various activities, but its most important job is to make sure that the national currency and money supply remain stable. Depending on the country, Central Banks ...
Reserve Bank of India (RBI) is the central bank of the country. It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 2, 20,000...
RBI was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.The Central Office of the Reserve Bank was originally established in Calcutta but later was permanently moved to Mumbai in 1937. The Central Office is where the Governor of RBI sits and where policies are formulated. However originally privately owned, since nationalization in 1949, the ...
Like every country, India has its own central bank – RBI, which performs the following roles : Conduct monetary policy Monitor and regulate banks and financial institutions Act as government’s bank I will focus primarily on the first role in this article. Conducting monetary policy means that the central bank is in charge of making sure the country has the right amount of...
We all perhaps remember this old saying “When US sneezes, the rest of world catches a cold”. This is because United States is the biggest economy in the whole world. Even the emerging markets (EMs) and prominently BRIC nations’ combined GDP is only 60% that of the US. For a long time the emerging economies (which are mostly export oriented) have depended heavily on the consumpt...
Commodity Market all across the world is growing at a aggressive speed and even common people like team shop vendors have started trading in commodity market. In this article, I am giving a brief note on aluminium as an Investment Option. Aluminium - Characteristics Aluminium is the third most abundant element in the Globe. In nature however it only exists in very stable combinations with...
India’s rapid economic growth has witnessed lot of changes and developments in each sector of the economy. India being one of the fastest growing economies in the world has attracted investors from across the world and the investors are investing on many things in India. One of such popular and profitable investment avenue for Indian as well as foreign investors is commodities market. My d...
Investment products are the instruments, where one can invest his money to earn profits, interests, dividends and bonus depending upon the nature of the investment made. Investment products have got lot of demand in the market, because the inflation rate, GDP growth and economic growth of the country have made it a need of everyone. But unfortunately, most of us are not aware of all the investme...
Today I got a query from one of my reader that he wants to know about fundamental analysis, and then I thought of posting the same answer on my site, so that others will also get benefited. Fundamental analysis is the key and very prominent factor while buying and selling of stocks and securities. This provides a complete analysis of the company, industry and economy related news to the investor...
