Personal Finance is more Personal than it is Finance

– By Meghashyam Sinkar

Every individual is unique in terms of its needs , goals , risk , upbringing , behaviour which makes their financial decisions idiosyncratic. 

Personal finance has nothing to do with anything outside your own finances. It has got everything to do with how you save, invest, earn, spend, allocate and insure.It is about 5% of economics and 95% of YOU .

If you aspire to be wealthy in the future, you must align your actions today to ensure that you do end up wealthy. It is nothing but aligning your present self with your future self . 

Certainly it is not a one time job.It is an ongoing process. 

To achieve individual’s mandatory, lifestyle and aspirational goals , one has to have proper personal financial planning . Again it will differ from individual to individual based on the financial position of an individual, cash inflows and outflows , asset & liabilities etc . 

Therefore , it is important not to follow others style of investment, financial decisions. Do what suits you and to your financial life .

Finally it is not about products, calculations and returns, it is about YOU.

Happy Investing !!!!!

Knowing ≠ Understanding

An American engineer , Destin Sandlin, who did an experiment with a bicycle . The handle bars are rigged to turn in reverse. If you turn the handles to the right, the front wheel goes left and when you turn the handles to the left, the wheel turns to the right.

Check out the below video to know what happened next 

 

This experiment is a great example of cognitive bias . A human mind is full of biases which affects his decision making process and hence the outcome.

We experienced loss aversion bias during March 20 sell-off where investors dumped the equity to avoid further losses.  Investors then tend to loose the focus of objective or goal for which investment was made and succumb to different biases .

Knowing the equity or for that matter any asset class  & the return patterns by doing all data analysis may not translate into a positive investment outcome .You have to be aware of your own cognitive bias and its potential influence on your behaviour in order to achieve the financial outcome that you desire .

Hence knowing is not equal to understanding & desired outcome .

Keep unlearning and learning !! Happy Investing !!!

Decoy Effect and It’s Influence on Your Financial Decisions

– Meghashyam Sinkar

Why does Apple always come up with three versions of iPhone?

Let’s understand this by an example.

Let’s say you are an ice-cream lover and one fine day, you are out to treat yourself. Shopkeeper provides you below options:

One Scoop Ice Cream : Rs 13/- 

Two Scoops Ice Cream: Rs 19/-

Three Scoops Ice Cream: Rs 20 /-

The negligible difference between the prices of 2nd and 3rd options gets your attention.

This is called Decoy Effect.

The Decoy effect, popularly known as the asymmetrical dominance effect with economists, is a phenomenon where people tend to have a change in preference between two options when presented with a third option that is asymmetrically dominated.

A 2nd option is just a Decoy option. Companies provide Decoy option so that customer can compare Decoy option with an expensive option and select the expensive one.

In the absence of a decoy option, the customer will compare: Rs 13/- vs Rs 20/- and may probably go with a cheaper option. But with decoy option, the customer now compares Rs 19/- vs Rs 20/- and most likely selects the expensive option.

Can you see a similar pattern in the pricing of iphone11 by Apple?

iPhone 11:
$ 699

iPhone 11 Pro:
$ 999

iPhone 11 Pro max:
$ 1099

Yes, Apple does use Decoy effect to drive consumer to buy the expensive version of their product.

It is explained very well in Dan Ariely’s book “Predictably Irrational”.

Here is a snippet from Dan Ariely’s TED talk which talks on psychological effects of options pricing.

Click Here => YouTube Dan Ariely TED Talk

How to avoid it ?

1. Make the budget and do not get swayed or confused by the number of models or prices.
2. Identify how much you need, so you don’t end up falling for ‘I can get so much more for “only Rs XX” extra.’
3. Try to Identify the decoy. Deliberately consider another reference point. Don’t ignore it while making the decision.

A popular saying goes “A Penny Saved Is A Penny Earned”

Happy Saving and Happy Spending !!!

Illusion of Control

– Meghashyam Sinkar

Have you observed or seen anyone trying to make the call or to type the message while driving the car ? Or drinking and driving ? So, that person believes that he can control the car if anything comes in front of his car suddenly and hence he continues to do this activity with the belief that he is in full control of his future action or outcome . We underestimate risk because we are in possession of all the facts and we feel that we can control the situation when in reality we can’t.

This is called Illusion of control Bias .

Rolf Dobelli , in his book – “The Art of Thinking Clearly” shares the nice instance

Every day, shortly before nine o’clock in the morning, a man with a red hat stands at a busy traffic light and begins to wave his cap frantically. After five minutes he disappears.

One day, a policeman comes up to him and asks: “Sir! May I ask what you are doing?”

“I’m keeping the giraffes away,” replies the man.

The puzzled policeman looks around and tells him, “But there aren’t any giraffes here.”

“Well, I must be doing a good job, then.” says the man proudly.

You may conclude that the man with the red hat wasn’t in the good of his mental health. However , The man’s belief, that absence of evidence (giraffes) is a proof of his prowess in controlling giraffe traffic, is the result of a behavioural bias called Illusion of Control.

The illusion of control bias describes the tendency of humans to believe that they can control or at least influence outcomes when, in fact, they cannot.

Almost 50 years ago, a group of 3 behavioural scientists conducted an experiment. They asked people to place bets on calling the right number from a roll of dice. The dice was rolled by the persons placing the bets. For a few turns, the dice would be rolled, the outcome hidden, and the participant would be asked to place his bet on the outcome. For some other turns, participants would be asked to first place their bets, and then roll the dice. Bets could be of varied amounts each time. After gathering findings from a number of participants, for a number of attempts, the researchers found a clear pattern emerging. Bet sizes tended to be much lower when placed after the dice was rolled, and much larger when placed before the dice was rolled. Participants obviously believed in their own ability to somehow influence the outcome – which is why they were willing to place bigger bets before the dice was rolled, but much smaller bets after they had rolled the dice. A classic case of illusion of control.

Ten years after this experiment, another experiment was conducted, by a different team. Individuals were sold $1 lottery tickets. Half the participants were sold tickets that were randomly picked and given to them, while the other half were allowed to pick a ticket of their choice, after looking at number sequences and so on. A week later, on the day of the draw, just before the draw, each participant was asked to quote a price at which they were willing to sell their ticket. The average selling price asked by the group that was given randomly selected tickets, was $ 1.96. The corresponding number for the group that was allowed to pick tickets of their own choice, was considerably higher, at $ 8.67. Here again, those who picked their own tickets, had an illusion that they had higher control on the outcome, which is why their asking price for their tickets was much higher.

When you add money decision with this illusion of control bias then it becomes toxic combination . Illusion of control is often observed in stock investing, when investors who do a lot of hard work before picking up stocks believe that their hard analysis and knowledge gives them control over the future of stocks they own. If the stock price corrects then they buy more of it with the concept of averaging it out which is certainly not bad . However, sometimes investors exceed the desired weightage in stock or sector or particular asset class . 

Benjamin Graham , in his book “The Intelligent Investor” writes – 

“The only thing you can be confident of while forecasting further stock returns is that you will probably turn out to be wrong . The only indisputable truth that the past teaches us is that future will always surprise us – always !”

Individual investors don’t diversify their stock portfolio properly with defined framework. Their concentration keeps increasing if any particular stock is added with some insightful information with detailed analysis and they keep tracking it closing . The fact that they are doing things themselves give them the illusion that they know what’s happening .

Equity Traders who watch the markets quite frequently , follow all the market related information -domestic & global , always try to remain on the top of it and then apply their own analysis to take the stock position believe that they have an edge and can immediately control the situation if needed . But , Mr. Market behaves the way he wants and not what investors want .

In general, researchers have found that the illusion of control is more likely experienced  when following conditions are fulfilled:

  • One has early success at a task.
  • Many choices are available.
  • The task one is undertaking is familiar.
  • The amount of information available is high.
  • One has more control over the decision process.
  • One has a personal stake in the outcome of the choice.

How to overcome it ?

  1. The first step is to be aware of it. 
  2. Be open to the possibility of being wrong or getting wrong .  
  3. Honestly asking whether luck or just randomness played a significant role in initial success.
  4. Craft your investment plan / financial plan , define the framework and then stick to it.

Keep Learning and Happy Investing !!!

Cognitive Dissonance Bias

– By Meghashyam Sinkar

It is widely known and proven that tobacco use or smoking can harm the body & may cause multiple type of cancer , heart problem & unhealthy decreased life expectancy . Why do people still indulge or continue to engage in unhealthy behaviour .Everyone is aware of its side effect . The warning on the packet is quite vivid to understand . But then people convince themselves that ” its a just 2 cigarettes a day or A lot of things can kill you, can’t avoid them all. They try to rationalise which has conflicting thought with its basic truth or information .

The same thing is observed with morning walk . Everyone knows it how important or good it is to have morning walk . Initially there is conscious effort to continue with daily morning walk , but then justify why one can’t continue for number of reasons.

It is a response to conflict that allows our original beliefs to persevere, even in the face of contradictory evidence. It describes the discomfort felt when your beliefs are inconsistent with one another or with your actions. This is called Cognitive Dissonance bias in behavioural finance .

Cognitive dissonance is the unpleasant emotion that results from believing two contradictory things at the same time.

Within the realm of investing, cognitive dissonance can negatively affect investor behaviour as we rationalise a previously held belief, even in the face of contradictory evidence.

Let’s understand it with examples .

Example 1 :-

This bias is clearly observed in long term SIP investors . The ultimate benefit of the SIP is to accumulate the units irrespective of the short term market’s positive or negative movements . This is the information with which they start the SIP . However , as soon as market start declining in year or two , they start feeling nervous . They start questioning the basis of SIP i.e. rupee cost averaging concept .

Market Trend

Here , Situation 2 is much better than Situation 1 for regular long term investors . However , investors who have started the SIPs in last one or two years are worried now after seeing negative returns .Negatives events like economy slowdown , US China trade war etc are making the investors nervous . Some of them may stop the SIP in panic which is ideally injurious to their financial wealth .

In reality what should they be expecting after starting the SIPs or making regular investment ?

Market to rise in one direction which forces them to buy units at high prices at every instalment  OR  Market to fall down and remain low for longer period of time which helps them to buy units at lower prices ?

Strange isn’t it? They are aware what is right for them yet they are unhappy, feeling bad , nervous. It’s a perfect example of cognitive dissonance.

Example 2 :-

Let’s consider the current situation of market where there is lot of uncertainty mounting around . There is an Investor already invested in equities with long term horizon and knows very well that market will have strong volatility in between . He now believes that market is going to fall in coming 2 -3 months. He formed his opinion based on the many articles he has read on various websites and newspapers ( Nowadays what’s app forwards). Based on these theories he definitely believes that the market is going to go down.

He asked his financial advisor . Financial Advisor educates the client & suggests him to stick to his asset allocation & strategy .  However , client refused to listen to advisor and he cuts his portion in equity . A very next day market falls down by 5% . Client believed what he did was right.

After a month or so , the market rebounds again and looks good on fundamental terms . His advisor asks him to rebalance his portfolio again and suggests him to stick to his long term plan with decided asset allocation by investing in equities again . The client now regrets his decision and realizes that he has made a mistake but is not in a position to acknowledge his mistake.

The similar behaviour observed while investing in stocks .

The only way to overcome the negative effects of cognitive dissonance is to recognize  it and attempt to abandon such contradicting techniques. Investors who understand these differences become better investors and can take better decisions.

Happy Investing !!!

Investing Is Less About IQ & More About EQ

– Meghashyam Sinkar

Investing specially in equity is correlated to intelligence . Of course, one needs to understand the numbers , its analysis & its implication . But is intelligence enough to score high in this subject ?

Sir Issac Newton was one of the smartest people to ever live. The man who conceptualized three laws of motion, pioneered calculus, and discovered the colour spectrum among other accomplishments, was a terrible investor. Because there’s a big difference between being a smart physicist & smart Investor .

In early 1700s in England , The South Seas Company was formed in anticipation of having a monopoly on trade to the Spanish colonies in South America after the War of Spanish Succession (1701-1714). Investors warmed to the appeal of this monopoly and the company’s shares began to rise. Sir Issac Newton also got attracted towards so called obvious opportunity . So , he invested and pocked some handsome gains of £7,000 . But the stock continued to rise. So he jumped back in, this time with an even bigger bet. Shortly after, the bubble bursted and the sell-off started. Newton lost the majority of his fortune and forbade anyone to utter the words “South Seas” in his presence ever again.

That is when the great physicist muttered that  “I can calculate the motions of heavenly bodies, but not the madness of people”.

Here’s a look at South Seas moved back then

South sea company

We regularly get to see such cases in stock market .

Albert Einstein – Father of Modern Physics and one of the greatest scientist that have ever lived. He developed the theory of relativity and is also well-known for his mass-energy equivalence formula E = mc2 .

Going back in the year 1921, the Nobel Prize winner in Physics – Einstein was awarded with 121,572.54 Swedish kronor. This is equivalent to more than twelve years’ income for Albert Einstein back then.

He invested a significant portion of this prize in the stock market but unfortunately lost the same in stock market crash in 1929. His wisdom in physics is not as good as his wisdom when it comes to analysing market conditions.

Long-Term Capital Management (LTCM)

In 1993 ,two mathematical genius , Fisher Black of Goldman Sachs &  Stanford’s Myron Scholes along with third economist , Harvard Business School’s Robert Merton had developed a revolutionary new theory of pricing options . ( Options in finance are part of derivatives) . The starting point of their work as academics was the long established financial instrument known as an option contract which works like this .

If a particular stock is worth , say Rs 100 today and you believe that it may be worth more in the future around Rs 200 (say in year’s time ) , It would be nice to have the options to buy it at that future date for say Rs 150 . If you are right , you make profit . if not , well , it was only an option , so forget about it . The only cost was the price of option ,which seller pockets . The big question was what that price should be . They wanted to work accurately on option price instead of just guesswork . So , they developed and reduced the price of the options to his formula:

LTCM formula
Source : From the book ” The Ascent of Money”

To make money from this insight , they partnered with renowned Salomon Brothers bond trader John Meriwether and formed the company ” Long Term Capital Management” in 1994 .

The going was smooth for initial 4-5 years, when markets behaved as expected and LTCM made hefty returns for its investors and managers. However, then struck some of the black swan events and that too with unexpected frequency. First, the East Asian crisis in 1997 and then Russian default in 1998.

Such un-natural events and the resultant fear & irrationality of markets could not be predicted and therefore could not be factored in mathematical models. The result was that all their widely diversified investments, which were supposed to behave independent of each other, started losing money simultaneously. LTCM started to bleed money on each trade every single day.

The fund was finally bailed out by intervention of Federal Reserve in 1998 and was dissolved in 2000.

A famous quotes from well known duo of Birkshire Hathaway sums up above message nicely

“A lot of people with high IQ’s are terrible investors because they have got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains.”-Charlie Munger

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” – Warren Buffett

Some of the lessons learnt from this History

  1. Leverage kills : LTCM is a classic example of excessive leverage & its risk .
  2. Intelligence (IQ) cannot guarantee good returns in markets.
  3. Investing is not pure science. It requires common sense.
  4. Markets can stay irrational longer than you can remain solvent.
  5. Keep emotions out – specially greed .
  6. Plan your cash flows & goals and then invest into asset which suits to your goals instead of following the trend . In short, avoid herd mentality .

Happy Investing !!!

The First Step Towards Financial Independence

– Meghashyam Sinkar

The group of retirees was interviewed once in Boca Raton , one of the Florida’s wealthiest retirement communities . Interviewer asked the people – mostly in their seventies – If they had beaten the market over their investing lifetimes .  Some said yes, some said no , most were not sure . Then one man said “Who cares? All I know is , my investments earned enough for me to end up in Boca .

Could there be a more perfect answer ? After all , the whole point of investing is not to earn more money than average or others  , but to earn enough money to meet your own needs . The best way to measure your investing success is not by whether you are beating the market but by whether you have put in place a financial plan and a behavioural discipline that are likely to get you where you want to go . If you have made enough money and met your goals then you are a successful investor.

Carl Richard – A financial planner from New Zealand in his book ” The Behaviour Gap” nicely given below sketch which is reality .

Carl richard - Money vs Income

Ask yourself these questions ” Why money is important to you? What does money do for you ?  What is the purpose of doing the investment? Take a time and write down the answers .

No doubt, money is an important part of life.  But it is easy to fall into trap of money to worry endlessly about how to make more .How much is enough ? And the more you have the more you need . It is better to think about what do you need money for ? What is your goal? But goals should not be influenced by external forces like peer or social pressure . Find out what gives you a happiness . What makes you to jump out of bed ? what gives you  peace ? So , it is important to have money but not more than the goal it serves. Make your financial plan , prepare cash flow , know yourself in terms of where are you now and where you wish to go ? And finally get into action accordingly . It does not matter whether Rakesh Jhunjhunwala, Warren Buffett, a fund manager, your friend, bunch of other strangers have beaten the market and you don’t . No one’s gravestone reads ” HE BEAT THE MARKET. 

“Financial Planning is not about the markets , not about the products . Its about you & your journey.”

Benjamin Graham in his book “The Intelligent Investor” quoted that Investing isn’t about beating others at their game . It’s about controlling yourself at your own game.” 

Happy Independence Day and Happy Investing !!

Market is falling …Again ???

– By Meghashyam Sinkar

If you are a member of active equity investors group or watching the business channels or following any brokers or any particular reports by experts , then you are bound to follow everyday market movement & end up looking at your portfolio to become more worried and anxious . Latest news senses that terrifying things are going to happen around due to poor budget, FII outflows, automobile and other industries slowdown,  poor monsoons, higher taxes on the rich, bad loans & so on . One news talks about the probability of 2008 type crisis hitting to the markets  .

First, Let us tell you that this is not the first time it is happening . For the new investors and just to brush up for our old investors , please read our earlier blogs during such challenging times .

  1. market-crashed-be-happy . written on August 2011 – fear over European Crisis 
  2. It’s different this time …….Time will only prove it !!. written on July 2012 – fear over a prolonged recession signals from developed nations and no sign of improvement at Indian Economy .
  3. Part II : ” It’s different this time …….Time will only prove it !!  Written on September 2015 –  fear over a slowdown in China.

It is always said that markets have short term memory and hence the investors .

We need to understand that the stock market moves in cycles, and thus fluctuations are inevitable.  Bhagavad Gita says – the very texture of life is of duality – pain and pleasure, success and failure , birth and death. So investing can’t be left out . It also has duality – Bulls and Bears , ups and down .

What should you do now ?

  1. Go back to your investment objective and time decided for that investment . If you have come to equity for 1 to 2 years to get quick returns …. Then loose , suffer , learn ,  and then come back as matured investor . If you have invested for long term ( Say 5 to 10 yrs ), then need not to worry .
  2. For direct stock investors – If you have bought the stocks based on the news like jet airways will be takeover by someone, Yes Bank can’t be doomed  ,Modi has got a strong mandate then particular industry and stock will outperformed , the stock is trading 52 weeks low and you got into it , your relative or friend given you a TIP ,So you can pocket  handsome profits in really short time…… Then loose ,suffer, learn , and then come back as matured investor . But if you have bought a stock at reasonable price with sound analysis and that stock is available at lower price than your purchase price , then go & buy more if you have funds or else need not to worry . Just hold it for reasonably long period of time . You get your rewards .
  3.  For MF investors specially regular investors , it is anyways good as you can buy the units at lower price (NAV) . In fact SIP investors should pray for such periods . Because they make more money in cyclic movement of markets and make less returns if market is straight northward direction.  If you are the SIP investors who have come to market after seeing the returns of 2017 – basically 1 to 2 yrs old SIP investors then continue it for more than 5-7 yrs because equity is for long term . Understand the risk in equity and learn to manage it . Read more on the risk in equity and how to manage it here .
  4. If you are still worried and nervous , then simply sell everything and go back to bank deposits or post office . Equity is not meant for you . Because a long-term view requires an ability to stomach extreme short-term market volatility.

If you wish to curtail your worries, first please stop watching/reading such media.  That will give you ample time and sense to think and you will wisely sail through it .

Market always swing between irrational exuberance to unjustifiable pessimism and this is the only reason you can make superior returns in equities . Certainly does not bring superiors returns from any asset class . Please note that if everything is certain , your returns will shrink to normal or below normal level .

If you think you get out of the market now and re-enter at lower level as it is going to fall , then you can try it that way but make sure you enter back to market . Time will prove whether the decision is right or wrong . If get it right , then don’t try it every time . It was just a luck . Don’t succumb to over confidence bias or illusion of control . If get it wrong , then loose ,suffer, learn , and then come back as matured investor.

Don’t accept anything at face value. The future is uncertain and that is only certainty about it . Listed some of the forecasts that have gone down in history books for the wrong reasons.

  1. A famous cover story run by Business Week magazine in August 1979, after the United States had struggled with about a decade of high inflation, low growth and poor stock market returns. The story appeared three years before the market set off for an 18-year rally, a period in which stocks multiplied 15 times.

27forecasts2- business week

2. The August 2000 edition of the Fortune magazine ran a famous story picking 10 Stocks to Last a Decade.

Ten years later, a portfolio comprising the 10 stocks  lost 70 per cent of its value, with only one stock posting a gain, while two firms on the list went bankrupt, one of them being Enron.

27forecasts6

3. “We’re going to reach a point where stocks are correctly priced, and we think that’s 36,000… it’s not a bubble. Far from it. The stock market is undervalued.” by James Glassman, author of the unfortunately-titled Dow 36000, who made the bold call when the benchmark was at 11,500, in October 1999.
Ten years later, the Dow was still hovering around the 11,000 mark.

James

4. In mid-1999, after earning  117.3% return in just the first five months of the year , Monument Internet fund portfolio manager Alexander Cheung predicted that his fund would gain 50% a year over the next 3 to 5 years and an annual average of 35% ” Over the next 20 years”.  The fund received more than $100 million over the next year.  But $10,000 shrunk to roughly $2,000 after the internet burst .  The fund no longer exits in its original form and is now named as Orbitex Emerging Technology Fund .

5. Silver price prediction touching Rs 100,000 level when it was Rs 70,000 level in 2012 on the ground of industrial use , consumer preference over gold , limitation of supply and so many reasons by all analysts .

There are so many such forecasts like Brexit , US election 2016  , India winning recent cricket World Cup etc .

Instead of getting panic on bad news or overoptimistic on good news , it is better to define your goals , do proper financial planning , prepare cash flow and then invest accordingly .

And remember that “Investing in Uncertain Times is almost always more profitable than investing when everything seems certain”.

Happy Investing !!!

Smart or Disciplined ???

-By Meghashyam Sinkar
Everybody knows the benefit of being self discipline in physical, mental, personal & professional life . You can achieve lot of many things being self – disciplined . One of such benefit is self control which enables to withstand temptations. 

Markets are full of temptations , predictions , emotions ( mainly fear & greed ) which can take you off the track and prevent you from remaining disciplined . This is especially relevant for investors as the impact of our decisions are typically felt over years and decades rather than just days and weeks.

Please refer the below data

PHOTO-2019-05-22-10-19-48

The above data talks a lot about time , patience , discipline & commitment and of course all of these characteristics to be in Right Asset Class which is equity .

The Legendary Investor Warren Buffet rightly said  “We don’t have to be smarter than the rest. We have to be more disciplined than the rest.” 

You can refer our old blog written on the same line in November 2011 https://pentagraphcapitals.wordpress.com/2011/11/30/time-or-timing-in-the-market-2/

Happy Investing !!!!

Questions that baffle me !!!

– By Meghashyam Sinkar
Sometimes observing people make you ponder , make you learn, make you laugh but sometimes make you puzzle .

On my recent vacation ,I observed people trying to break the line and enter in between while boarding the plan . The question came to my mind why such strange action /confusing behaviour inspite of having allotted seats .

That made me thinking of such confusing behaviour in investment world . Listed down some of such questions which baffle me .

During first interaction with the new client at his office , he mentioned that equity is risky and hence he has stayed away from it since last 10 yrs . After 30 mins , he goes out for smoking . When I enquired further about the number of cigarettes he smokes in a day . He said ten (10) and he finds investing in equity risky. What is more risky smoking cigarettes  or investing in equity ? I am confused .

Lot of investors get into LIC policies that to number of them and keep on investing in  it after agents convince them with the name of LIC brand or sovereign security . If the product is really good then why do you really need so many agents /middlemen inspite of having offices across most of the cities and need to pay them hefty commissions . LIC could have easily done it at least in the current age of technology.  I am confused.

When investors are advised to do 15- 20 years of long term SIP to get best risk adjusted returns then they are not sure of their future income for commitment . But the same investors take the home loan of 20 years wherein EMI is mandatory and investment is voluntary which can be paused , reduced or stopped completely unlike EMI. I am Confused.

Investors are obsessed with higher fixed interest rate and risk their principal amount for few percentage higher interest rate . Dont they ask these questions to themselves … Why someone is offering such higher interest rate ? Is that company in love with you ? Is trustworthiness questionable ? I am confused .

There are lot of trading classes which advertise  “ Earn Rs 1000 daily from stock market with capital investment of Rs 1 L   . Then why the class owners running the classes on Saturday & Sunday’s at the course fee of Rs 5000/- per person . Why don’t they earn these returns themselves without revealing the secret to become billionaire . I am confused .

Does it confuse you too ? Please share your thoughts if any or any strange behaviour . Meanwhile observation continues ……

Happy Investing !!!!