By Somali K Chakrabarti Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could. ROBERT FROST in The Road Not Taken Life is all about the choices we make. Time and again, we come across situations when we must choose one option over the other. Much like multiple choice questions, of the many given alternatives, we need to select the one, which under the given circumstances seems to be the best, correct or most optimum as compared to the others. Though there is something very exciting and liberating about the ability to choose and most of the times we crave for choice, yet, the decision to choose can be stressful too.
By Somali K Chakrabarti China will trap its smog and turn them into diamonds. – World Economic Forum As bizarre as it sounds, this video posted by the World Economic Forum (WEF) on their Facebook page claims that China will tackle Beijing’s air pollution problem by turning the carbon from smog particles into a diamonds. If at all such a technology is practically and economically feasible then maybe it is time for our Delhi government to explore the possibility of use of such a Technology, the pollution levels in Delhi being at its highest and one of the worst in the world. While the schools remain shut for three days, all constructions and demolitions have been banned for five days, as usual the center and the state government are busy leveling charges against each other as to who is to be blamed for the smog that shrouds Delhi. Whereas Delhi govt sites crop burning in Punjab as the major reason for pollution, the central govt says that 80% of the pollution is caused inside the city.
Buy Low, Sell High Though, we all know that for generating reasonable returns, any investor should ‘Buy Low and Sell High’, yet, for an individual investor this is easier said than done. It is not only difficult to track the market on a continual basis, while diversifying the risk, but it is also difficult to have the heart to buy beaten down stocks when market has fallen substantially and sentiments are running low. Besides, with increase in losses, the gain needed to break-even also increases. Moreover, for an investor, the pain of selling a stock at a loss far exceeds the pleasure of selling the stock at an equal amount of gain. Hence, the importance of containing the downside to the portfolio cannot be emphasized enough. That is where the expertise and knowledge of a fund manager comes into play – in selection of appropriate asset class at any given time while lessening the psychological pain of investors. Dynamic Asset Allocation Strategy Balancing exuberance with caution, a dynamic asset allocation strategy uses the market volatility as an opportunity for switching between asset classes to benefit from growth of equity market while reducing the volatility of returns. With the example of ICICI…