India Insight

Less profit is not loss

November 10, 2008

The times they are a changin’, and indeed they have. For better or for worse, I am not sure, but what has changed is the way we look at making money from money.

Call it what you may — credit crisis, crisis of confidence, financial tsunami, meltdown — erosion of wealth is never good news. And rattled markets often lead to political turmoil and even shift in power.

So what is happening in the markets, economy, and banks; well, with anything to do with the art and science of making money?

Global markets have turned schizophrenic, banks are not lending and investor over-confidence has turned to no-confidence.

Money begets money, they say, and so does greed. I think greed has been the single biggest factor in driving markets to the levels they were at some months back. And now, greed again to cut losses and take immediate profits by selling short is not helping the cause.

Fundamentals, economic health, robust balance sheets and healthy credit, once the buzzwords of sound investing, have now been reduced to classroom theories of an ideal world. Good on paper, lost in greed.

I have never directly invested in any market for I never understood the exact reasons why markets go up or when shares hop, leap and jump. Also, I could never time the market.

Then again, I felt safe investing in an instrument which I could understand. My returns were far less and my net worth still a joke but my logic still remains — LESS PROFIT IS NOT LOSS.

Comments
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no risk no return

 

But you’ll always have the equity expert who’ll tell you that money in a bank FD is getting you negative returns pegged against the surging inflation. Given the performance of MFs, I cannot even say that’s the correct route for equity exposure. Maybe, diversifying your investments across assets was, is and will remain the best approach.

Posted by Madhu | Report as abusive
 

Everyone today is disappointed with equities… and i believe at 20,000 levels (may be 1-yr or 2-yrs down the line) investors and analysts will be disappointed with not investing in equities today..
It’s the speculators who have lost.. for investors who have been senisible enough and been actual “investors”, equities should still somehow manage to generate far far positive and higher (highest!)returns.. but yes.. in the LONG run.. it’s just the test of patience…

Posted by Aditya | Report as abusive
 

I have a simple comment. Let us learn to face loss with a brave face. Loss teach us to be less greedy and more helpful to the less fortunate. It’s a part of life.

Posted by Merchant Mohamed Salim | Report as abusive
 

To some extent I agree with Roy’s logic that less profit is not loss as it is also well said that every single Penny saved makes a Pound and if you manage to save the Pound, that’s a big deal. So reisk averse people should try avoiding the security markets as it involves a great degree of a risk as unpredicted fundamentals may impare the value of their investments. So one should wisely invest as a Rupee saved is a Rupee earned and equity could be a diversified option for those who have hefty bank balances at their disposals and are prepared to bare losses.

Posted by Ajit | Report as abusive
 

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Less profit is not loss

November 10, 2008

The times they are a changin', and indeed they have. For better or for worse, I am not sure, but what has changed is the way we look at making money from money.

INDIA STOCKS/5PCTCall it what you may -- credit crisis, crisis of confidence, financial tsunami, meltdown -- erosion of wealth is never good news. And rattled markets often lead to political turmoil and even shift in power.

So what is happening in the markets, economy, and banks; well, with anything to do with the art and science of making money?

Global markets have turned schizophrenic, banks are not lending and investor over-confidence has turned to no-confidence.

Money begets money, they say, and so does greed. I think greed has been the single biggest factor in driving markets to the levels they were at some months back. And now, greed again to cut losses and take immediate profits by selling short is not helping the cause.

MARKETS-SOUTHASIA-STOCKS/

Fundamentals, economic health, robust balance sheets and healthy credit, once the buzzwords of sound investing, have now been reduced to classroom theories of an ideal world. Good on paper, lost in greed.

I have never directly invested in any market for I never understood the exact reasons why markets go up or when shares hop, leap and jump. Also, I could never time the market.

Then again, I felt safe investing in an instrument which I could understand. My returns were far less and my net worth still a joke but my logic still remains -- LESS PROFIT IS NOT LOSS.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
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