Saturday, April 10, 2021

my Articles

 [10/04, 1:27 pm] Jiten Patel: Why STOCK MARKET is  The Biggest Auction House ......


 Every One is familiar with the Auction Process......And we all know what happens in any form of Auction Bidding..... Most of the Times and With Higher Probabilities the Bidder always ends Up Paying more ......i mean He bids way more and ends up paying more then the Instrinsic Value of the Product..........


Let us not fall in to the nitty gritty of why such things happen in Auction Bidding Process ......


Likewise same Auction Bidding Happens in Stock Market During Bull Market.....


The Buyer of a Particular a Stock always ends Up Paying More then he had Intended and way above the Intrinsic Value because Other Participants are also bidding for the same Stock simultaneously and Jacking Up the Prices to Higher and Higher Levels......

So the Desperate FOMO Buyer of Stock.....same as in the case of Auction Bidding..... ends up Paying exhorbitant High Price for the Stock and feels proud for Owning the Stock.......

But in the End he is the Loser because he Ends Up Paying more for The STOCKS........

[10/04, 4:55 pm] Jiten Patel: Constant Conflict Between Savers who Invests their Money In NSC..... Company Bonds......PPF .......Bank Deposit and Businesses........


Who Wins and Who Looses......


Before i start my explanation We keep aside the Inflation Criteria.......


In 2010 Interest Rates in Banks were around say 9:50% and Corporate Bonds Yields were somewhere around 12/14% depending on Companies.......PPF was also giving somewhere around 8:75% or 9% per annum interest......

But Businesses were having Tough time because Lending Rates were somewhere around 14% to 16%....... because of High Interest Rates businesses have Low Profits.........And so the Savers......Depositors were Winning by Earning High Interest Rates.......


now the Cycle has Turned........


Interest Rates are around 5:50% in Banks .......6:75% in PPF...... corporate Bonds yields around 7:50%.......


So in these Scenario Businesses are Winning and Savers ....... Depositors are loosing........


Net Net Sometimes Businesses Wins Against Savers/Depositors.......and Sometimes Savers/Depositors Wins Against Businesses.......



Grab as much as you can from my articles because no one will or can give you the understanding of what i am writing......... Connecting the Dots of Different Fields Subjects and  All what i am writing is not possible to any extent by any one person to understand and Write........

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