Investing in a Bear Market

Investing in a Bear Market
How does one think about investing in a bear market?


Rules for Investing discipline
Many people think that the best way to invest is to fill it, shut it and forget it - and they are reinforced by the dramatic successes of people who found Reliance shares in their grandfather's trunk or bought L&T in the last bull run and held on for dear life.


Featured Comment: What is a rights issue?
Sujit asks:


Wednesday, September 05, 2007
Sensex overvalued? A Walk Down History Lane
Morgan Stanley thinks the Sensex is about 11% above fair value.


Wednesday, August 01, 2007
How To Handle A Sinking Market
The mayhem is here. Nifty is down 183 points to 4345 and Sensex is down 615 points to 14935. A 4% drop in a single day of trade. Every single index is in the red, and nearly 90% of stocks are down today. Is it time for the bears? Is it time to exit? To go home and forget about stocks for a while?


Sticky: Shenoy's Investment Fundas
This post contains an organised series of links to my blog posts about investing.
Why Invest?
Are you Investing or just Saving?
How to go about investing
Creating an Investment Game Plan
The Value Cost Averaging Strategy
Stocks
Opening a brokerage account in India (21/5/07)
Investing in Stock Markets: A roundup of posts
Introduction to Shares, IPOs and Stock Markets
IPOs: What's important in an offer document
What are EPS and P/E ratios?
How to choose stocks in a downturn
Mutual Funds
Introduction to Mutual Funds
Mutual Fund FAQs
Dividend option or Growth option?
Difference between shares and mutual funds.
Choosing Funds: The Dividend Yield Strategy
Closed Ended Funds: Misleading name and High costs.
Myth: Is a lower NAV better for you?
Mutual Fund Dividends: Playing with your own money
How Entry and Exit loads affect you
Exchange Traded Funds (ETFs)
What are ETFs?
Insurance
What is Insurance?
How much Insurance do you need?
Unit Linked Insurance Plans (ULIPs)
How ULIPs can loot you: A real exampleTerm Plans + MFs are better than ULIPs: With data!ULIPs' lower management fees must be matched by performanceULIPs: A Good Investment?
ULIP Net Asset Values: Where to find them.
Comparing ULIP returns to Mutual Funds
Term Plan Premiums
Real Estate
Rent vs. Buy: Should you buy or rent?
The Real Estate Cash Flow Calculator
Taxation
Filling out IT return forms (ITR-1) for 2006-07 *NEW*
How can FMPs save you tax? Capital Gains Tax: A primer
Fundas: Long Term Capital Gains
Bonus Shares: A Tax Saving Scheme?
Can I really save Rs. 33,660 in tax?
Futures and Options
What are Employee Stock Options (ESOPs)?
An Introduction to Futures & Options
Become a Smarter Investor
Liquid funds are better than Fixed Deposits
The cost of IPO funding
Capital Guarantee Plus Appreciation: Possible?
How much money do you need for retirement?
SIPs are not necessarily less risky
Don't believe media headlines; do your own research
Beware of Dividend pushers
Timing the market: A good thing
Commentary
DLF IPO Analysis *NEW*
Buffet on Risking what you should not*NEW*
Small number are not really small.
FIIs are not the source of all problems
Budget 2007 Analysis: A compendium of posts
NFO: Benchmark Gold ETF
Is the Nifty Overvalued? (Feb 7, 2007)
The lack of irrational exuberance (Jan 26, 2007)
Can I save Rs. 33,660 in tax? (Jan 21, 2007)
Your savings may be taxed next year (Dec 4, 2006)
The stock market is all about percentages
Links
Blogs talking about Indian Investments
GlossaryGlossary of Investment Terms, Part 1.
Linkfests: 1, 2, 3, 4, 5, 6, 7


Sunday, October 29, 2006
Bonus shares: A tax saving scheme?
Lots of Indian companies offer "bonus" shares: a 1:1 bonus means that for every share you own, you get one "free" share. Now given that the company's fundamentals don't change, the number of outstanding shares doubles but the net profit remains the same. Meaning, to retain the same P/E, the share price must come down by half.


Monday, January 30, 2006
Two Great posts for investors
Charu Majumdar has two very good posts on investing:
Ten Steps to Wealth Creation (talks about how you can invest and grow your money)
Personal Investment Questions answered: Describes thought processes a lay investor would have. Makes for some very good reading. Charu also reconfirms my view that term insurance is the only insurance that makes any sense.


Friday, January 20, 2006
Insurance: A primer
Everyone's talking about Insurance nowadays. What is it? And why should you, a regular salaried employee buy it? Why should the business owner buy it? Why should ANYONE buy it?