Alerts through PushBullet

StockViz Alerts

This would have happened to us more than once: you like a stock, but you don’t like its price. You come up with a level at which you would buy it and then… forget all about it. Never again!

You can now subscribe to price alerts for Indices, ETFs and stocks by clicking on the orange ‘Alert’ button on their pages.

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Manage your alerts

You can manage your alerts by navigating to the ‘Alerts’ tab on your ‘Portfolio’ page. Make sure you check the ‘Notify me via PushBullet’ box.

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Setup PushBullet

Go to PushBullet.com and sign in with the same email address that you use for your StockViz account. And voila! Whenever your alerts are triggered, you will receive a notification on all the devices that you have PushBullet installed! Ain’t that cool!

Investor education is a waste of time

When you read about Ponzi schemes, “chit funds”, teak plantations, ULIPs, variable annuities, etc… you might be led to think that these are because people don’t know any better. So maybe we only try and educate them, they’ll know how to spot these scams and stay way from them. However, that doesn’t seem to be the case.

Ponzi schemes are everywhere

You would think that in the US, after all the billions of dollars spent on education, regulation and enforcement, people would know better. From ponzitracker.com:

Nearly six years after the word “Ponzi scheme” became a household name thanks to Bernard Madoff, Ponzi schemes continue to proliferate and leave a trail of financial destruction in their wake as demonstrated by newly-compiled data showing more than $1 billion of newly-uncovered schemes and over 600 years in prison sentences handed down in the first half of 2014. In the first six months of 2014, at least 37 Ponzi schemes were uncovered, with a total of more than $1 billion in potential losses. This equated to the discovery of a Ponzi scheme (1) more than once per week, (2) every 4.9 days, or (3) every 118 hours. Included in this list are at least three Ponzi schemes with estimated losses of at least $100 million or more, with the estimated $300 million in losses in the alleged TelexFree Ponzi scheme ranking as the largest Ponzi scheme exposed in the first half of 2014.

“Real” Finance is strange

Morgan Housel at fool.com:

  • People are ignorant around costs.
  • If I want to be a firefighter, I need extensive training. If I want to manage the firefighters’ retirement fund, I need a nice suit and a sales pitch.
  • Finance is filled with people who remain in business despite awful track records.
  • Finance is taught overwhelmingly as a math-based field, in which students learn how to calculate beta by hand and dissect a balance sheet in their sleep. In the real world, finance is overwhelmingly a psychology-based field, where the best investors are those who control their emotions.
  • There are few other subjects in which people have an obligation to understand something, yet so many willingly choose not to.

The Behavior gap is as wide as ever

In the US, over the past 20 years, “equity fund” investors achieved an average 5.02% annualized return, which is 4.2% less than the 9.22% that he/she could have achieved by simply investing funds in an S&P500 index-tracking fund.

Investors chase performance. Here’s how Vanguard simulated performance chasing behavior in a recent study:

Initial investment: At the start of the analysis period, we invested in any fund in existence for the full three-year period from 2004 through 2006 that had an above-median three-year annualized return.
Sell rule: Using three-year rolling periods of returns, we moved forward one calendar year at a time. Funds that achieved below-median three-year annualized returns at any time were sold, as were funds that were discontinued.
Reinvestment rule: After any sale, we immediately reinvested in each fund that achieved an average annualized return within the top-20 performing funds in the style box over the prior three-year rolling period.

Here are the results:

performance chasing

Sounds legit

Real Step Pashupalan brought to you by Step Up Marketing Pvt. Ltd (SUMPL) (Source)

SUMPL is engaged in rearing of livestock mainly goats etc. for its customers long with the rearing of the livestock, SUMPL has also been selling livestock to the customers for a consideration wherein the purchaser has the option of keeping the purchased livestock with SUMPL for breeding and rearing purposes only for a period of 3.5 years as per the terms and conditions laid down in the application form given to the purchaser at the time of purchase of the livestock. In case the purchaser of the livestock decides to keep the same with SUMPL for rearing, a Certificate of Goat Keeping would be issued by SUMPL bearing a registration number against the goats which purchaser opted to keep with them.

And if owning goat certificates is not your thing, how about real estate? Viswas Real Estates and Infrastructures India Limited (VREIL) came out with these gems: (Source)

  • Own Your Property Advance Scheme Monthly Plans
  • Lumpsum Property Advance Schemes
  • LPAS-MIS Platinum Plan, and
  • Own Your Property Advance Scheme (Daily) Plans

It was sort of like a layaway plan for real estate combined with insurance. The customer pays a monthly installment of 500/- which at the end of the year becomes 6,000/- which is the total property advance paid. On this amount, the estimated compensation value (ECV) is 600/- and thus, the refund amount with ECV after one year is 6,600/-. On receipt of the total advance amount, VREIL executes simple mortgage deed (without possession) in favour of the investor. VREIL also offers insurance coverage in conjunction with its schemes.

Yes, regular people invested in these plans and SEBI recently busted them.

Conclusion

Regulators and policy makers would do well to study the behavioral and psychological forces that cause investors to make irrational decisions. The focus so far has been on the brain, it should be on the investors’ hearts instead.

Opening Bell 28.08.2014

Your world at 9am

world.2014-08-28

Equities

Major
DAX(DEU) -0.19%
CAC(FRA) +0.04%
UKX(GBR) +0.12%
NKY(JPN) -0.52%
SPX(USA) +0.00%
MINTs
JCI(IDN) +0.35%
INMEX(MEX) +0.35%
NGSEINDX(NGA) -0.28%
XU030(TUR) -0.43%
BRICS
IBOV(BRA) +1.89%
SHCOMP(CHN) -0.07%
NIFTY(IND) +0.40%
INDEXCF(RUS) +0.32%
TOP40(ZAF) -0.27%

Commodities

Energy
Brent Crude Oil -0.07%
Ethanol +0.00%
Heating Oil +0.05%
Natural Gas -0.05%
RBOB Gasoline -0.07%
WTI Crude Oil -0.10%
Metals
Copper -0.03%
Gold 100oz +0.20%
Palladium -0.09%
Platinum +0.15%
Silver 5000oz +0.39%

Currencies

USDEUR:-0.17% USDJPY:-0.13%

MINTs
USDIDR(IDN) -0.00%
USDMXN(MEX) -0.07%
USDNGN(NGA) +0.09%
USDTRY(TUR) +0.11%
BRICS
USDBRL(BRA) -0.65%
USDCNY(CHN) -0.01%
USDINR(IND) +0.03%
USDRUB(RUS) -0.03%
USDZAR(ZAF) +0.01%
Agricultural
Cattle -0.08%
Cocoa -0.82%
Coffee (Arabica) +0.21%
Coffee (Robusta) +1.25%
Corn -0.21%
Cotton -0.19%
Feeder Cattle -0.02%
Lean Hogs -1.17%
Lumber +0.00%
Orange Juice +1.35%
Soybean Meal +0.86%
Soybeans -0.30%
Sugar #11 -0.70%
Wheat -0.18%
White Sugar -0.63%

Must reads

Modi to launch plan for every Indian household to have bank account. (Reuters) Bankers travel across the country to convince tribal communities to open bank accounts. “Some of the families closed the door, saying that they don’t need bank accounts.” (DNA)

Meanwhile, prompted by Indian investors’ inability to stay invested in equity funds for several years and also their record of entering these funds when the market is peaking and redeeming when the market is at a low, fund houses have been mobilizing money through closed-ended funds. (TOI)

Narendra Modi sets up panel to identify laws that may have become obsolete within the last 10 to 15 years. (LiveMint)

Good luck and have a nice long weekend!

Opening Bell 27.08.2014

Your world at 9am

world.2014-08-27

Equities

Major
DAX(DEU) +0.82%
CAC(FRA) +1.18%
UKX(GBR) +0.70%
NKY(JPN) +0.03%
SPX(USA) +0.11%
MINTs
JCI(IDN) +0.33%
INMEX(MEX) -0.02%
NGSEINDX(NGA) -0.25%
XU030(TUR) +2.07%
BRICS
IBOV(BRA) +0.14%
SHCOMP(CHN) +0.22%
NIFTY(IND) -0.02%
INDEXCF(RUS) -0.68%
TOP40(ZAF) +0.58%

Commodities

Energy
Brent Crude Oil +0.27%
Ethanol +0.00%
Heating Oil +0.00%
Natural Gas +0.59%
RBOB Gasoline +0.29%
WTI Crude Oil +0.07%
Metals
Copper +0.00%
Gold 100oz +0.00%
Palladium -0.12%
Platinum +0.08%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.01% USDJPY:-0.07%

MINTs
USDIDR(IDN) +0.13%
USDMXN(MEX) -0.01%
USDNGN(NGA) -0.05%
USDTRY(TUR) +0.05%
BRICS
USDBRL(BRA) -1.17%
USDCNY(CHN) -0.08%
USDINR(IND) -0.21%
USDRUB(RUS) +0.04%
USDZAR(ZAF) -0.04%
Agricultural
Cattle +0.00%
Cocoa +0.73%
Coffee (Arabica) +5.47%
Coffee (Robusta) +1.06%
Corn -0.07%
Cotton +0.00%
Feeder Cattle -0.07%
Lean Hogs +0.92%
Lumber +0.09%
Orange Juice +6.51%
Soybean Meal +1.03%
Soybeans -0.05%
Sugar #11 +2.41%
Wheat +0.28%
White Sugar +0.54%

Must reads

The Mutual-Assured-Destruction that is the SC verdict on Coal-gate: Power, Metal, Banks are all on the block. The SC does understand the gravity of the situation. We’ll know on September 1. (LiveMint, FT)

Blue Dart: at least somebody has to make money off e-commerce. (DNA) BLUEDART 4,749.00 25.85 (0.55%)

Tata Global: we are going to be all over the place and in premium too. (DNA) TATAGLOBAL 150.95 -2.15 (-1.40%)

India and China share one common pain point: what to do with State Owned Enterprises (SOEs) who end up sucking most of the capital away from productive use? (FT)

Some people just don’t get it: Vandana Shiva, “the Gandhi of grain”, believes that the Green Revolution destroyed India’s traditional way of life. “Until the 1960s, India was successfully pursuing an agricultural development policy based on strengthening the ecological base of agriculture and the self-reliance of peasants. By shifting the focus of farming from variety to productivity, the Green Revolution actually was responsible for killing Indian farmers.” What if you are poor and hungry, lets all hold hands and sing Kumbaya. (NewYorker)

Good luck!