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Dear All

StockMarketModelStreet is the main product in your line of purchase, which is definitely priced on the higher end.

Would be a suitable product for those equally inclined to learn more about the stock markets.

For those who would want to take up our other modules slightly priced lower within a price range of 25,000-35000 INR +taxes.

You can always drop us a mail for appointments for consultation pertaining to the subscriptions for the aforesaid modules.

If you want to directly purchase the module from our website you can as well subscribe to the same.

Special words to our patrons please do follow our blog, our company page for updates , categories & suggestions.

EI Nino Impact on the Economy what is EI Nino?

 

 

 

There is a phase of ‘El Niño– Southern Oscillation’ (ENSO), which refers to variations in the temperature of the surface of the tropical eastern Pacific Ocean and in air surface pressure in the tropical western Pacific. The two variations are coupled: the warm oceanic phase, El Niño, accompanies high air surface pressure in the western Pacific, while the cold phase, La Niña, accompanies low air surface pressure in the western Pacific.[2][3] Mechanisms that cause the oscillation remain under study.

El Niño (/ɛlˈnnj//ˈnɪn/Spanish pronunciation: [el ˈniɲo]) is a band of warm ocean water temperatures that periodically develops off the Pacific coast of South America, El Niño is defined by prolonged warming in the Pacific Ocean sea surface temperatures when compared with the average value.

The Southern Oscillation is the atmospheric component of El Niño. This component is an oscillation in surface air pressure between the tropical eastern and the western Pacific Ocean waters. The strength of the Southern Oscillation is measured by the Southern Oscillation Index (SOI). The SOI is computed from fluctuations in the surface air pressure difference betweenTahiti and Darwin, Australia.[8] El Niño episodes are associated with negative values of the SOI, meaning there is below normal pressure over Tahiti and above normal pressure of Darwin.

The studies of historical data show the recent El Niño variation is most likely linked to global warming. For example, one of the most recent results, even after subtracting the positive influence of decadal variation, is shown to be possibly present in the ENSO trend,[51] the amplitude of the ENSO variability in the observed data still increases, by as much as 60% in the last 50 years.[52]

The exact changes happening to ENSO in the future is uncertain:[53] Different models make different predictions.[54][55] It may be that the observed phenomenon of more frequent and stronger El Niño events occurs only in the initial phase of the global warming, and then (e.g., after the lower layers of the ocean get warmer, as well), El Niño will become weaker than it was.[56] It may also be that the stabilizing and destabilizing forces influencing the phenomenon will eventually compensate for each other.[57] More research is needed to provide a better answer to that question. The ENSO is considered to be a potential tipping element in Earth’s climate.[58

 

 

Implications of Coaching & Market Dynamics

The implications for coaching are significant:  Advising traders to “stick to your plans” and “follow your process” works as long as market regimes are stable.  Then it doesn’t work.  In a world of changing markets, adaptability is the new discipline.

The implications for mentorship are also significant.  Teaching the same chart patterns and technical rules at all times to all traders is like using the same training for soldiers who will be performing in the desert, at sea, and in rainforests against established military forces at some times and insurgent guerrillas at others. If there’s one thing elite fighting forces and well trained athletic teams know, it’s that you study the opponent and adapt your strategy and tactics to the situation.

How many traders truly study markets and adapt their strategies and tactics to the threats and opportunities they identify?

Is trading a useful activity a thoughtful reader writes:

“I am unable to reconcile as to how traders are providing any value to the society by what they are doing. I accept that we may be called providers of liquidity (which I really doubt we are) or guys who determine correct asset price helping bring market efficiency, but it still does not make trading relevant from a social perspective…I sometimes feel that as a trader we are pretty selfish guys concerned with our own well being. When we make profits, we do not regard the losses someone else made and trading seems like a zero sum game to me.”

 

The real issue here is the assumption that one’s value–and the value of one’s activities–is a function of help to others. 

The great scientific discoveries, for the most part, have reflected the very selfish concerns of investigators who become consumed with finding the answers to challenging questions. Doing what they love and following their passion does indeed bring benefit to others: that is the happy synthesis. In starting a business and seeking success, an entrepreneur brings jobs and needed goods and services to the world. In creating a great work of art, a painter absorbs herself in her medium and brings something of beauty to others.

 

 

BETA a measure of risk -By Sameer Bharadwaj & Narayan Krishnamurthy

The main tool used to calculate stock volatality is called beta.The beta of an investment compares it to the index movement as a relative measure of risk.

A positive beta means that the stock & the index have moved in the same direction. A beta of 1 for instance means that the stock has moved exactly 1% for 1% move in the index. A beta of minus 1 means that it has moved exactly that amount in the opposite direction.

A beta of less than 1 means that it is less volatile than the market while a beta greater than 1 means that it is more volatile. A beta of +0.50 for instance, would indicate that on an average , the investments returns move half as much as the markets do in the same direction.High beta stocks are the ones most sensitive to market volatality.

How can you track performance of portfolios? with Dipen Sheth of Wealth Management Advisory Services Here he gives us an extract of a model portfolio

We will track” the two portfolios” using methods similar to mutual funds with one important difference. Every fortnight, when we give you an update on actions , we will also release an NAV.  You can compare the change in that NAV to changes in the Nifty.

Suppose a mutual fund raises Rs 10lakh by selling one lakh units of Rs 10 each. It puts the money into various assets while also paying for its overheads, brokerages & meet any other expenses. The initial NAV is a little less than the initial price of Rs 10.As NAV rises , you can benchmark the appreciation versus a stock market index.

We will use a similar NAV- based method to track the two portfolios. We are assuming the portfolios were launched on an initial date .

Every fortnight , we will give you an update on the performance of the portfolios.

Choose your CAP A pick of small cap & Mid cap stocks can put a zing in your portfoio: By Narayan Krishnamurthy & Sameer Bharadwaj

One of the longest running investing debates is about the pros & cons of investing in small stocks versus large stocks. Should you pay a premium for a stock with a large market capitalisation or should you go for cheap small-cap stocks?

Logic can be marshalled on both sides of the fence.The arguement in favour of investing in small caps is simple. A small business can grow quicker because of the small base & therefore , returns are higher. As businesses grow larger their growth rate could slow down.

A classic example is INFOSYS. The software biggie doubled its turnover & profits every year for the first eight years after listing in 1993.

in 2006-7 , it achieved Rs13,149 crore turnover & although its revenues rose by Rs 4121 crore, the growth rate was 45%- impressive but slower than in the past.

So growth prospects are in favour of small stocks. But the argument in favour of a big- stock focus also deserve to be heard.

A big business is less vulnerable to crisis like the loss of a big client. It has a proven track record & due to institutional interest, corporate governance is likely to be better.Institutional holding also lends support to the price of large-cap stocks- institutions don’t sell stocks in a hurry.

#WealthMyths

1. The Materialist Myth : In a free economy someone can get wealthy, not merely by having  someone else’s  wealth transferred to their account, but by creating new wealth , not only for themselves , but for others as well.

2. The Greed Myth : Capitalistic route can bring social beneficial outcomes.   Smith wrote business people are led by an invisible hand

& thus without intending it , without knowing it, advance the interest of the society.

Rather than inspire miserliness, capitalism encourages enterprise.

Entrepreneurs including greedy ones, succeed by delaying their own gratification, by investing their wealth in creative but risky ventures that may or may not pan out.

 

#StockMarketModelStreet who is a #RelationshipManager

As a relationship manager your main responsibility would be to maintain & nurture each client relationship designated to you.

What this job entails is a need for a close understanding of the different aspects of your client’s personal life.

However , brilliant social skills are not all you would need for this particular role. It is necessary to have quite extensive knowledge about financial markets in order to be in a position to give advice on the impact it could have on the services & products the bank offers as well as the client’s own finances.

comprehensively put, a role of a relationship manager demands not only understanding of the financial markets but interest in client’s personal life & lifestyle as well, as this will be important while assisting him in his investment decisions.