Get Lucky as an Investor amid Stock Crashes

Get Lucky as an Investor amid Stock Crashes:

before starting reading this post answer these questions to yourself :
Q1 - Do you believe in Investing rather then speculating??
Q2 - Are you an excellent analyst? - Allright strong analytical abilities would do after reading this post.

If your answers to both these questions is a 'YES' then you are the luckiest investor who will make huge profits in these bearish times in stock markets.
- The Bears are all around, future looks sceptical, everyone has moved on to a pessimistic approach from optimistic approach while speculating in share markets in just four short months, but who said that you are a speculator!!Investors are thinking about shrinking money markets and their lost money in Stock Market Crises and it's parent 'US Economy Crash'. I read yesterday that US economy has shed a whopping over $1 trillion in it's value during these tough times of financial crises where all the major indices including Dow Jones Industrial Average(DJIA), Standard and Poor(S&P), New York Stock Exchange(NYSE) are bleeding in red. Asian Economies including Indian Economy, Japanese Economy and Chinese economy are feeling the pinch when there are hardly any dollars in the market. Stock markets like BSE(Bombay Stock Exchange), NSE(National Stock Exchange) have also been engulfed in this down turn and have shed more then 50 percent of their fat to bears prevelant everywhere at this time of the year when compared to higest level reached on January 10, 2008.it's no surprise that the coming festival Season and festivals which are known world wide for their pomp ans show including Diwali and Christmas will be dull this year.the US market crash and Bankruptcy of Investment Banks like Lehman Brothers however Lehman Brothers opened under Barclays, Merill Lynch(Merill Lynch posted a whopping US$ 7.5 billion Q3 loss a few days ago), Wachovia and others have played spoilsport for earlier stock market lovers loving the sport of investing in share markets.

Visitor's who read this post also read:
-Why US Economy crashed
-BSE,DJIA, NSE, NASDAQ Closing rates
-Festivals of Lights- Diwali
-Fortune 500 Companies List

However you need not think about the bearish side before investing, According to Warren Buffet the best time to invest is during a Stock Market Crash, but remember i am talking about investing and not speculation. So it's not ideal time for short time speculators and they will not be benifited from present market.But who said that you are Speculators and not investor's!!!While choosing the company in which you want to invest in present market condition you need to be a great analyst. Ok! but atleast a good analytical brain will still be required after reading this entire post. I don't believe in people saying that future looks dull and dark. Yeah, i know it's true that this whole economic crises started from mortagage and subprime crises in real estate loans in US but could have been prevented if Investment banks and mortagage banks had not become so greedy. Failure of AIG was biggest upset, Any how that is past and i don't want that our past should have impact on our future investment plans I LIVE IN PRESENT GUYS!! and present stock markets looks very promising for investors. remember that i am talking about investors and not speculators. all they need to do is to invest by following these simple steps and use their brain power along the way.

Following points should be true for a company which you choose for investing now:

1. Make a list of Company's whose stocks you wanted to purchase a year ago(however this condition is not limited to only those company's) or before the time when bears took over from the bulls on Wall Street in US or Dalaal Street in Mumbai.

2. Note down the present stock price of these company's(Choose the company which you think are worth your thinking!).

3. Make a detail of the assets of the company (both tangible and non-tangible), also analyse the Balance Sheets of the company's , annual reports or any other financial statements made by the company in last 2 to 3 years.

Visitor's who read this post also read:
-Why US Economy crashed
-BSE,DJIA, NSE, NASDAQ Closing rates
-Festivals of Lights- Diwali
-Fortune 500 Companies List


4. Be sure of the management policies, management capabilities of the company and also don't forget to analyse the managerial activities of the company in recent years.

5. After all the analysis is done and you have made your analysis report card of the company. see the following aspects:

a. If current assets and annual reports of the company show atleast 100% difference then present market value(ie present market value is atleast half of the assets of the company) and if balance sheet of company is showing profits then it's right time to purchase that company's stock NOW!!

b. In minimum six months from your date of investement in such stock you will see that your investment has already reached double and still is growing and man no bank or other investment firm gives such sure returns in such a small interval of time.

6. However you should be sure of the managerial activities and capabilities and if possible the way of working of that company bacause it's all in hand of the management to take company to highest possible levels and remember a single decision of management can change the fortune of the company.

7.This investment approach has a success percentage of 75% in past so you are the lucky one in this global slowdown. One thing i need to emphasise that you should have a strong analytical abilities so that you always remain in top 75% of such investor's and chill you are not the first one to use this approach of investing used by world famous investor.

Kindly do post your comments about this post and was that information useful?

"Working hard to change thinking style of speculators so help me in bringing such speculators a step nearer to world class investor's"

- Himanshu Sharma

- mail me know_himanshu@yahoo.co.in for suggestions and you can send me your views as mail and surely they will be published under your name provided they fulfill the publishing terms and conditions.

Top Industrial Czars Losers list in recession

Indian Business tycoons have lost most of their wealth and value in present US recession all because of Bearish markets all over the world, the effect of recession is now even felt on Tokyo Stock exchange (Japan - 2nd largest economy) and it fell a whopping 900 points on last friday.

see live Dow Jones(DJIA) rates

Below is the list of top losers in ongoing recession when compared to their personal worth on 11th january 2008 as on 10th october 2008, it can be noted that indian markets lost 2000 points in trading week of(6th october 2008 - 10th october 2008) seeDow Jones closing rates now.


1. MUKESH AMBANI -

Net worth: $47.9 billion (on January 11, 2008)

Net worth: $25.3 billion (on October 10, 2008)

Loss: $22.6 billion

Percentage change: 47.2%


2. RATAN TATA -


Net worth: $27.4 billion (on January 11, 2008)

Net worth: $13.8 billion (on October 10, 2008)

Loss: $13.6 billion

Percentage change: 49.5%


3. ANIL AMBANI -


Net worth: $44.2 billion (on January 11, 2008)

Net worth: $13.8 billion (on October 10, 2008)

Loss: $30.4 billion

Percentage change: 68.8%


4. SUNIL MITTAL -


Net worth: $17 billion (on January 11, 2008)

Net worth: $12.2 billion (on October 10, 2008)

Loss: $4.8 billion

Percentage change: 28.4%


5. KP SINGH -


Net worth: $36.8 billion (on January 11, 2008)

Net worth: $8.7 billion (on October 10, 2008)

Loss: $28.2 billion

Percentage change: 76.5%


6. AZIM PREMJI -


Net worth: $11.5 billion (on January 11, 2008)

Net worth: $6.3 billion (on October 10, 2008)

Loss: $5.3 billion

Percentage change: 45.7%


7. KUMAR MANGALAM BIRLA -


Net worth: $3.6 billion (on January 11, 2008)

Net worth: $2.3 billion (on October 10, 2008)

Loss: $1.3 billion

Percentage change: 35.5%


8. ANIL AGARWAL -


Net worth: $13.2 billion (on January 11, 2008)

Net worth: $4.2 billion (on October 10, 2008)

Loss: $9 billion

Percentage change: 67.9%


9. OP JINDAL -


Net worth: $7.1 billion (on January 11, 2008)

Net worth: $2.1 billion (on October 10, 2008)

Loss: $5 billion

Percentage change: 70.6%


10. RAMESH CHANDRA -


Net worth: $12.8 billion (on January 11, 2008)

Net worth: $2 billion (on October 10, 2008)

Loss: $10.8 billion

Percentage change: 84.1%

RBI extends CRR cut to RRBs, cooperative banks

Reserve Bank of India has extended CRR cuts to RRB's to ease pressure on liquidity in share markets.

October 2008 Dow Jones rates

The Cash Reserve Ratio (CRR) has been reduced by 50 basis points to 8.5 per cent of the net demand-and-time liabilities from the fortnight beginning October 11, RBI said in two separate notifications.

Currently, CRR requirements for regional rural banks, scheduled state co-operative banks and scheduled primary (urban) co-operative banks is nine per cent.

Live BSE, NSE, NASDAQ rates

Earlier during the week, RBI reduced CRR for scheduled commercial banks to 8.5 per cent with the intention to release Rs 20,000 crore in the financial system facing liquidity problem arising out global turmoil.

The cut in the ratio happened after a gap of five years. RBI last reduced the CRR by 25 basis points in June 2003.
The announcement comes three weeks ahead of a scheduled half-yearly review of the credit policy.

"This measure is ad hoc, temporary in nature and will be reviewed on a continuous basis in the light of the evolving liquidity conditions," it said.

Dow Jones October 2008 Closing rates, BSE, NSE

The post provides closing rates details of Dow Jones Industrial Average(DJIA), NASDAQ, BSE (Bombay Stock Exchange), NSE (National Stock Exchange) on per day basis. You can check live DJIA ticker for latest Dow Jones Industrial Average Updates.

Note: The rates shown are according to indian standard calender (calender according to indian time).


October 31,2008 - FRIDAY - Closing Rates :


DOW JONES (Closing rates) - 9180.69 - Up^189.73

NASDAQ (Closing rates) - 1698.52 - Up^41.31

SENSEX (Closing rates) - 9788.06 - Up^743.55

NIFTY (Closing rates) - 2885.60 - Up^188.55



October 30,2008 - THURSDAY - Closing Rates :


DOW JONES (Closing rates) - 8990.96 - Down(-74.16)

NASDAQ (Closing rates) - 1657.21 - Up^7.74

SENSEX (Closing rates) - 9044.51 - Up^36.43

NIFTY (Closing rates) - 2697.05 - Up^12.45



October 29,2008 - WEDNESDAY - Closing Rates :


DOW JONES (Closing rates) - 9065.12 - Up^889.35

NASDAQ (Closing rates) - 1649.47 - Up^143.57

SENSEX (Closing rates) - 9044.51 - Up^36.43

NIFTY (Closing rates) - 2697.05 - Up^12.45



October 28,2009 - TUESDAY - Indian Markets closed on occasion of Diwali



October 27,2008 - MONDAY - Closing Rates :


DOW JONES (Closing rates) - 8378.95 - Down(-312.30)

NASDAQ (Closing rates) - 1552.03 - Down(-51.88)

SENSEX (Closing rates) - 8509.56 - Down(-191.51)

NIFTY (Closing rates) - 2524.20 - Down(-59.80)



October 24,2008 - FRIDAY - Closing Rates :


DOW JONES (Closing rates) - 8691.25 - Up^172.04

NASDAQ (Closing rates) - 1603.91 - Down(-11.84)

SENSEX (Closing rates) - 8701.07 - Down(-1070.63)

NIFTY (Closing rates) - 2584.00 - Down(-359.15)


October 21,2008 - TUESDAY - Closing Rates :


DOW JONES (Closing rates) - 9265.43 - Up^413.21

NASDAQ (Closing rates) - 1770.03 - Up^58.74

SENSEX (Closing rates) - 10683.39 - Up^460.30

NIFTY (Closing rates) - 3234.90 - Up^112.10



October 17,2008 - FRIDAY - Closing Rates :


DOW JONES (Closing rates) - 8979.26 - Up^401.35

NASDAQ (Closing rates) - 1717.71 - Up^89.38

SENSEX (Closing rates) - 9975.35 - Down(-606.14)

NIFTY (Closing rates) - 3074.35 - Down(-194.95)



October 16,2008 - THURSDAY - Closing Rates :


DOW JONES (Closing rates) - 8577.91 - Down(-733.08)

NASDAQ (Closing rates) - 1628.33 - Down(-150.68)

SENSEX (Closing rates) - 10581.49 - Down(-227.63)

NIFTY (Closing rates) - 3269.30 - Down(-69.10)



October 15,2008 - WEDNESDAY - Closing Rates :


DOW JONES (Closing rates) - 9310.99 - Down(-76.62)

NASDAQ (Closing rates) - 1779.01 - Down(-65.24)

SENSEX (Closing rates) - 10809.12 - Down(-674.28)

NIFTY (Closing rates) - 3338.40 - Down(-180.25)



October 14,2008 - TUESDAY - Closing Rates :


DOW JONES (Closing rates) - 9387.61 - Up^936.42

NASDAQ (Closing rates) - 1844.25 - Up^194.74

SENSEX (Closing rates) - 11483.40 - Up^174.31

NIFTY (Closing rates) - 3518.65 - Up^27.95


October 13,2008 - MONDAY - Closing Rates :


DOW JONES (Closing rates) - 8451.19 - Down(-128.00)

NASDAQ (Closing rates) - 1649.51 - Up^4.39

SENSEX (Closing rates) - 11336.66 - Up^808.81

NIFTY (Closing rates) - 3490.70 - Up^210.75



October 8,2008 - WEDNESDAY - Closing Rates :


DOW JONES (Closing rates) - 9447.11 - Down(-508.39)

NASDAQ (Closing rates) - 1754.01 - Down(-108.00)

SENSEX (Closing rates) - 11328.36 - Down(-366.88)

NIFTY (Closing rates) - 3513.65 - Down(-92.95)


October 7,2008 - TUESDAY - Closing Rates :


DOW JONES (Closing rates) - 9955.50 - Down(-369.88)

NASDAQ (Closing rates) - 1862.01 - Down(-84.00)

SENSEX (Closing rates) - 11695.24 - Down(-106.46)

NIFTY (Closing rates) - 3606.60 - Up^4.25



October 1,2008 - WEDNESDAY - Closing Rates :


DOW JONES (Closing rates) - 10850.66 - Up^485.21

NASDAQ (Closing rates) - 2082.33 - Up^98.60

SENSEX (Closing rates) - 13055.67 - Up^195.24

NIFTY (Closing rates) - 3950.75 - Up^29.55

Also see previous 6 months closing rates for analyzing market:
DJIA, BSE, NSE, NASDAQ-September 2008 closing rates
DJIA, BSE, NSE, NASDAQ-August Closing rates
DJIA, BSE, NSE, NASDAQ-July Closing rates
DJIA, BSE, NSE, NASDAQ-June Closing rates
DJIA, BSE, NSE, NASDAQ-May Closing rates
DJIA, BSE, NSE, NASDAQ-April Closing rates
DJIA, BSE, NSE, NASDAQ-February Closing rates

Biggest Banking Failure in US

Wasington Mutual(WaMu) is in limelight once again but due to bankruptcy this time, Federal regulators seized the largest American Savings and loan institution and brokered an emergency sale of it's assets to JPMorganChase for US$ 1.9 billion.

also read : Economic rescession of 2008 - article

Some key points of the story are as follows:

• Assets worth US$307billion, WaMu was largest savings and loans bank and sixth largest US bank behind Bank of America, JPMorgan, Wachovia, Wells fargo and Citibank.
• Wamu's seizure is the biggest bank failure in US history, previous largest failure was Continental illinois, which had about US$40 billion in assets when it failed in 1984.
• JpMorgan becomes largest US bank with US$900 billion in deposits, it will acquire all the banking operations of Washington Mutual, including $307 billion in assets and US$ 188 billion in deposits.
• JPmorgan will pay $1.9 billion to the US Federal Deposit insurance Corporation.
• It is JPmorgan's second major purchase of the year after the pyrchase of Bear sterns in mid-march of 2008. Facing $19 billion of losses on soured mortagage loans, the lender put itself up for sale last week.
• Washington Mutual customers withdrew $16.7 billion from accounts since september 16.

also read : Economic rescession of 2008 - article

The Fall of US Financial Institutions

American international Group popularly known as AIG is world's biggest Insurance provider but it ran into crises in mid september 2008 when it showed signs of cashlessness (having no cash reserve at all). Everyone was surprised when the news of AIG going for sell off came open and it spread like fire in a forest. soon the news reached fed reserve(Federal Bank) and it had no other option then investing in AIG by giving it loan of US$ 85 billion and purchase 80 % stake in world's largest insurance provider.

The Fall of AIG(American international Group) :
So what was the reason behind cashlessness of world's largest insurance company?? The decline of AIG started after the attack on World trade center's on 9/11 by terrorist groups. AIG used to provide insurance cover to world's biggest organizations and was running soundly until the credit crunch and mortagage crises began to start in US economy, various US investment banks like Lehman Brothers(158 years old institution), Merill Lynch, Morgan Stanley, Bear Sterns etc provides loans in real estate.

US public wanted expensive houses which were beyond their budget. US banks gave them loans thinking of gaining more profits from the interest rates which they will get on loan amount however they overlooked the most important condition which was "whether the customer is eligible for purchasing house which was out of the budget for him/her" still they gave the loan which eventually was never returned back to the lender bank.

Now small mortage banks which felt the pinch of credit crises earlier took loans from bigger banks in order to sail their bank to shore in these tough times when their was almost zero income for small mortage banks, now big investment banks like Lehman Brothers, Merill Lynch, Morgan Stanley, Bear Sterns gave loan to these much smaller banks which were facing credit crunch at that time thinking that they will get batter rewards for the investments made in mortagage banks.

To insure their loan to smaller banks they insured their investment with insurance company AIG in particular. Since AIG was dealing with much bigger banks the risks were even higher for insurance companies like American international Group(AIG). Now bigger investment banks never got their money back from smaller mortagage banks and their amount was dead. so the bigger banks could not pay the premiums to insurance companies and this was the time when insurance companies started helping them according to the terms and conditions of the insurance type done with the banks, during this time there was no source of income for insurance companies like AIG.

This was the time when the cash reserve of Insurance companies reached almost nil. Investment banks which had invested in Credit crunch facing mortage banks were already on verge of bankruptcy. US citizens lost their faith on Financial Institutions and began to sell their shares, the environment of investment bank stocks was discouraging. Share Markets all over the globe felt the heat and all the major indices including DJIA, Standard and Poor index, NASDAQ, BSE, NSE felt drastically.

Hence Federal Reserve bank had to act fast to control the situation and offered loan of US$85 billion to the AIG for improving it's financial conditions, due to this act Fed reserve acted as last hope for many other banks.

Looking at present uncertainity the US government has made an announcement for providing a US$700 billion package to the financial market so that the US $ remains the strongest US economy in future too. but their has been resentment in citizens of USA when they heard about the news that US government is pumping money earned from taxes into the Financial Market to control global uncertainities .

my fingers are crossed when it comes to question "will supremacy of US $ continue after worst economic depression after the depression of 1929". lets wait and see how things unfold in coming couple of months.

Recently markets tumbled most due to biggest US bank failure in history(Washington Mutual).
Read about Washington Mutual Failure now!

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