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Showing posts from November, 2009

Book Fair at Danga City Mall

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There will be a book sharing session at the following book fair: Venue: Danga City Mall Johor Bahru Date: 28-11-2009 Time: 5:30pm - 6:30pm As usual, I'll be sharing with my readers some usefull investment tips. So see you there!
How Happy Are You? If I were to ask you a question: How happy are you? To answer this question, you will start to look around your friends and neighbours what they have in order to judge how happy you are with what you have. This is known as "anchoring" which means we like to make decisions based on some reference points. To illustrate this concept further, there was an experiment done by a famous behavioural economist, Dan Aeriel based on an actual ad from the Economist . There were three offers in the ad: an Internet-only subscription for $59, a print-only subscription for $125, and a combined print and Internet subscription, also for $125. When Dan gave these options to a group of students, 16% chose the internet-only subscription, none took the print-only subscription, and 84% opted for the combined subscription. Sounds reasonable ? But in his second round of experiment, he took out option 2 since no one selected it and offer the Internet-only and combined subscription op
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What If Jeremy Grantham is Right? Jeremy Grantham, president of investment management firm GMO LLC, has been getting a lot of press lately. At the market's top, he warned of an impending bear market. At the bottom in March, he forecast a historic rally. Today, he says the market is 25% overvalued. Should you be worried? Perhaps not. Let's start with Grantham's track record. He's made a couple of good calls lately. But does he get it right all the time? Of course not. No one does. But even if he's right, it wouldn't necessarily be negative. It all depends on your time horizon. Here's why... How Long-Term Investors Can Benefit From A Bear Market If you own stocks on margin, call options, or LEAP options, a market downturn could be devastating. A 50% decline in the value of a fully margined account would erase your equity. Your options could expire worthless. Who benefits from a bear market? The obvious answer is short sellers and put options buyers. But others