January 27

Why is everything (stocks, ETF, crypto, asset prices) going up?

Lately, everything I look at is going up. I look at stocks of tech companies in US and they are going up. I look at various stock market exchange indexes and they are going up, both in India and in US at least. Crypto-currencies are going up for the last year or so. And not just up, some of these assets are going up in a crazy fashion, doubling 10x in a year. It was becoming hard for me to even understand what I was doing and made investing even more risky.

For a long period of time, until recently, I used to believe that net result of every transaction is 0. If you are spending money, someone is earning money. So if you make money in the stock market, someone should be losing money. That is what the conventional wisdom in my head said. Continue reading

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August 23

Empathy and Efficiency: Thoughts about a workplace

There has been lot of talk lately around Empathy. Most of it has been in context of a workplace. I work at a workplace and have done so for a few years now. It is not easy to understand empathy even though it is primitively simple in definition. Empathy means the ability to understand and share the feelings of other. Makes sense to me, and perhaps to you too!

Now why is empathy so important? I think that empathy is directly related to the ability of building relationships. We believe that in order to form meaningful relationships empathy is perhaps a pre-requisite. I wont deny that! In order to form deep relationships it is very important to understand what other people feel more than what they say. In fact of all the strong relationships I have built it was empathy that was the building block of these relationships.
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April 7

Credit Crisis

Credit crisis has been the buzzword, if not lately, then about few months back. Now the buzzword is stimulus package and recession. Well that actually has been the after effects of credit crisis itself. There have been many who have tried to explain credit crisis, using hi level mathematics and english, that is beyond my comprehension. Well today i found a link to answer of the same question, WHAT THE HELL IS CREDIT CRISIS? And the amazing part is its a video, so much better to understand.

I liked it and its actually a layman’s guide to Credit Crisis. Its by Jonathan Jarvis.

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March 20

Disinflation and Deflation : good signs or not

There is a lot of talk of disinflation and deflation these days. But what do we mean by it all. Imagine a car moving at 100 mph . Suddenly it slows down to 20 mph almost in a very short period. That is disinflation. Imagine now that this car slows even further, going into reverse in another short interval. That is deflation.
Only the car is economy and speed is the inflation rates.

Does that mean that if inflation, which after all is a measure of expensiveness, goes down it will be good for consumers. Appears so on the surface, but in the current scenario it is not so. It rather shows that there is no demand or desire among consumers to buy. Less people buy, less economic activity, less growth. Hence a moderate inflation rate is considered to be good for economy.

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