Archive | September, 2009

Things to come….

9 Sep

This post is a reply to a comment by Somya.

Dear Somya

You have touched on a very crucial point. For creating a class of informed investors, which this blog aims to do, we will now launch a dedicated investing section to help our readers make more informed investment decisions. For starters, we will be starting a fund which will invest in equities, so that readers of this blog can follow the trading history and see for themselves how different investment strategies play out in the real stock market. As responsible advisors, we obviously do not guarantee that the replication of our trading strategies will yield profits. However, the aim is more to educate readers about different investment options, strategies and asset classes. Through this experiment, our readers can get a feel of how it is to invest in the stock market, and for those who already invest, we can share our thoughts on the trading strategies.

The above is in the planning process and I will keep you informed about the same. Thank you for the invaluable feedback. And keep visiting informedinvestors 🙂




Original comment by Somya

Time: Monday September 7, 2009 at 8:25 pm
IP Address:


I am not an investor and know nothing about the stock market. Hence, I am not an informed investor at all. But of late I have realized the importance of having at least some amount of knowledge about the financial markets (I have started earning you see!). Hence, I have a sincere request to make.

I was watching BBC news today and they happened to present a report on the financial markets. After almost one year since the financial turmoil struck the U.S. having a ripple effect on the rest of the world, BBC report tried to analyze the situation in India. This got me very interested.

The benchmark index in India last year had fallen by almost 50% leading to investors loosing incomes in as much as seven figures. Industries which relied heavily on exports suffered immensely with demand falling drastically from the Europe and the U.S. FIIs pulled out all their money from our country leading to a bottleneck situation. Growth rates fell, inflation levels rose, rupee depreciated further due to FII pull outs, people lost jobs, stock market became all of a sudden a nightmarish dream for even the unaffected.

After a year has passed by, India seems to have recovered much faster that expected. Benchmark index has improved by almost 66% (not sure whether I have this correct) since then and a certain head of a magazine named Mint said that India was in many ways isolated from the crisis. After a year, inventories in the Europe and the U.S. have dried up because of which import demand is slowly picking up now, the obvious benefits reaped by industries like textiles in India. People seem to be investing again, though with a more cautious attitude now.

I sincerely request you to make your blog more lively and informative and talk about the current scenario. Now that considerable time has passed since the crisis, much can be concluded upon. You blog should be doing that. Also, BBC in this entire month will be talking about the fin crisis and I am sure will come up with very interesting observations and hypothesis to work upon. Please update your blog frequently so that uninformed investors like me could be more informed.

Thanks. Regards, Somya Sethuraman