Money on the markets

A maturing market amid the mayhem

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.


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.

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