Sunday, June 6, 2010

Finance and the Framing Effect


I came across an interesting article on the current Market scenario by DEEPAK SHENOY...
Consider this statement:
"The Indian stock markets have grown 20% in the last year, with earnings growing over 18% on the back of an economy that grew 7%, among the largest growth rates in the world."

And then, in a piece from a newspaper where the sole editor was in a coma for two years:
"In the last two years, the stock markets have gone nowhere, at nearly the same levels of May 2008. Earnings have stagnated - the earning-per-share (EPS) of the Nifty has moved only 2% in the same period, despite the economy clocking growth rates of 6% or more. A fixed deposit in a bank would have done better."
Read more...


This blog is an initiative to help the middle class community to ignite the Financial genius within them and motivate them to achieve Financial Freedom

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