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Showing posts from June, 2021

Cryptos making new lows!!

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  April 13 2021-  Bitcoin reached its zenith touching its lifetime high at $64,800... June 21 2021- Bitcoin hits its lower circuit of 2021 falling to about $31,608. A catastrophic rise in the prices of crypto currencies in 2020 made the world astonished. Its rise continuing till April 2021. But after a series of events it made its lowest of 2021 in just 2 months of time period. Not only bitcoin but also its biggest rival Ethereum also plunged and reached its all time lows of 2021. Dogecoin, Lash coin etc also gave big shocks to investors. What happened actually? Amid large selling pressure after reaching its zenith the cryptos started falling but it resisted its position after sometime not making major downfall but due to other series of events it plunged extensively. But China the biggest miner of cryptos in the world banned mining and trading of crypto currency alleging them as 'speculative' and 'a means of tax evading source of income'. The Chinese banking Assosciati...

Causes of Inflation

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  Inflation is a general rise in the prices of commodities and goods at a time. Inflation is not caused by any man-made or political cause (except in hyperinflation) but is caused due to series of events. Causes of Inflation: Demand-pull Inflation: It is due to aggregate demand growing faster than aggregate supply. It is caused when economy is at its full swing and there is high employment then the demand of goods in the market will be high as people will have more money in their hands and there will be more expenditure. So producers of goods in demand will think of increasing goods prices to make more profit as demand will be high and this will lead to increase in prices thereby increasing inflation rate. Cost Pull Inflation: It is caused due to increase in prices of raw materials. For eg: There will be increase in crop prices if there is drought or flood like situation in most parts of country ruining crop production. So there will be less supply of food items and more demand in ...

Investing at an early age

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  "Someone is sitting in the shade today because someone planted a tree a long time ago" -Warren Buffett If you want to make your 30s better and to love yourself at this age then start investing in your 20s. Regular investments made right from an early age can reap huge benefits at the time of retirement because of investments you can afford things that others' can't at that age. Early investments accompanies power of compounding that you can't imagine. It is the 'Magic of investment'. If a person invests just 5000 rupees a month at 10% interest then after 5 years only he will end up with 3.9 lakhs due to power of compounding. The early you start the more you get. Warren Buffett quoted, " I started investing at the age of 11 and regrets to start late." Benefits of early investing: Ability to take more risk: At an early age you can take more risk rather than an old age person who tries to secure his life by making save investments. More experience...

The Bubble in Stock Market!!

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  The Reserve Bank of India recently published its Annual Report for the year 2020-21 wherein it wrote that there is a big bubble in the Indian Stock Market. Sensex and Nifty are at its record high even when the country's economy is facing a severe disruption due to the second wave of Coronavirus pandemic and the RBI has warned that risky assets have shown dramatic rise in their prices even due to many states imposing lockdowns and restricting economic activities in their respective states. However, situations are not as worse as that were in the first wave but the Indian economy is facing depression situation but still the Indian Stock Market is making record highs. Several indicators like the famous Buffet Indicator which compares the GDP of the country to its benchmark indices of Stock Market showed that the indexes are trading at a very high prices compared to the country's GDP which is still recovering from the pandemic crisis. The historical average of both Nifty and Sens...