Newspapers never fail to hype the sudden increase in stock prices . But these are not based on fundamentals, the real conditions remain the same or are becoming worse. Gullible investors who believe in the hype end up losing money.
Archive for the ‘economy’ Category
Stock hype
Wednesday, May 27th, 2009“Independent” directors
Monday, January 12th, 2009The boards of listed companies in India have independent directors, but they are ” independent” in name only. They are usually appointed on the board to return a favor or oblige some one.
Most of them are aware of what is happening in the company, the products or services being sold. They are only expected to make up the quorum and sign the papers presented.
The coming crash
Sunday, January 4th, 2009Though some financial newspapers still carry a lot of hyped news, all the actual signs point to a crash in the economy. 2 days ago I had gone to a big private sector bank to deposit a transfer cheque. There I saw notices pasted everywhere about change in work timings, so they are trying very hard to cut costs. After 15th Jan , I think stock markets will crash.