Invest Without Emotions
The amount of money raised through initial public offerings in India has fallen by more than 80 per cent year on year. In the past six months there have been 22 listings in India, raising a combined $780m – down on the same period last year when just over $4bn was raised in India through 28 IPOs. This could be because of heightened PE activity, with players looking to preempt companies from going public.
Read more about IPO performance here.
Here’s an FT.com article that provides an excellent follow up of our post discussing dividends.
Chinese local governments owe $1,650bn in debt, close to 27% of China’s economy. Combined with central government debt and other liabilities such as bad bank loans, analysts estimate China’s overall explicit debt load is about 70% of gross domestic product.
Read more here: Extent of local debts in China laid bare – FT.com.
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Previously, we had discussed what to look for while buying stocks. Irrespective of whether you are fundamental or technical investor, there are some key metrics that you should follow to screen stocks. However, even though some metrics have complicated math, they can be completely misleading when it comes to their predictive power.
Measures like Beta, Analyst Recommendations, P/E and PEG typically have very little bearing to how the stock eventually performs. To read more about the 5 measures to ignore while screening stocks, hop on over to Smart Money here.
“Technical Analysis, which refers to the study of the action of the market itself as opposed to Fundamental Analysis, which studies the goods in which the market deals. We, as technicians, focus our attention on price because that’s the only thing that’s going to pays us, nothing else.”
“Fundamental guys study the cause of market movements; we choose to focus on the effect. All known facts, estimates, surmises, and the hopes and fears of all interested parties are integrated in this effect (price). The Fundamentalist always has to know why, but why doesn’t pay us.”
Must read: Why Charts? | The Reformed Broker.