Thiru Writes

RCEP(The Regional Comprehensive Economic Partnership) is a free trade agreement between 16 member countries.

What does a free trade means?

A free trade is a trade in which these countries will trade without any tariff on their goods.

What are the benefits?

One can sell their products without any additional tariff. That means their prices gets competitive. So sale will be high.

Why didn’t India sign?

India is a country where we mainly trade IT(Information Technology) which is not playing a notable role in this agreement. On the other hand 40% of our trades are with this 15 countries. Which means they are getting benefitted more than us.

What do we lose if we sign?

Their farm goods and electronics will occupy the Indian market. Which will eventually let our producers to lose.

What India wants to sign the agreement?

India wants the agreement to be mutually beneficial. So, India is willing to set limits on free trade and after which the tariffs kicks in. By this way it will be beneficial for India and others too.

To conclude RCEP is a big deal. The decision taken for now is good for our own manufacturers and farmers. Thumbs up to the government for the decision.

– Thiru

Eid is a day to cheer and to laugh with all your heart. It’s a day to be grateful to god for all of his heavenly blessings on us. Wishing you a happy Eid.

Happy Investing!

– Thiru

There is a famous saying in English

“I could calculate the motions of the heavenly bodies, but not the madness of the people”

This was said by the famous scientist Issac Newton. Everyone knew that he is a very knowledgeable person.

But why he has to say this about people?
What is the relation between the words and stock market?
Let’s see…

Newton had invested in a well-known company South sea at England. He has made a 100% profit from that investment. Months after he saw that the share went up very high. Immediately he made a huge investment into it. Which went on a very high loss. That made him utter the above saying. From that point onwards he hate anyone telling ‘South Sea’ for his entire life.

But on the other side the stock again grew up tremendously. The thing is he wasn’t interested and got shocked and stucked with the loss which made him not to invest in stock markets thereafter.

Now let us come to the answer for the question. Obviously NO!!!
Investors don’t want to be strong technically. Investors has to be keen about their reason, expectation and timing of investments.

Alpha,Beta and Standard Deviation have nothing to do with investments. The only thing matters is patience.

Sensex has an average return of 16% but churning investor’s average return is only 7%. This clears the point that running behind market will not be a good choice. Waiting will yield the expected result.

To be an investor you have to know only the needs(goals), time period and expected return . If you are clear on that you can make a very clear decision. The real thing matters is patience and emotional control over the investments.

– Thiru

Happy Investing!

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Good company in a journey makes the way seem shorter. — Izaak Walton