Real estate Price trends in India

This information is based on the data related by the national housing board of India.


Real estate price variation - Data statistics as per the national housing board (India).
{{Click on the image to enlarge}}

Biggest gainers in 2012 (Q2): Pune
Biggest losers: Kochi

Why is a small amount of inflation necessary?

A small amount of inflation is actually necessary for economic growth. At zero inflation, money sitting in an account can be more valuable than taking an economic risk.

It is even worse if there is deflation. Deflation is a viscious cycle, where money is even more valuable in the future than now. The deflationary spiral goes like this:   Increased value of future money --> save more ---> less investment ---> less capital ---> fewer jobs ---> lesser salaries ---> increased value of money --> ....

Why items are priced at .99c or at odd decimal digits?

Two main reasons:
* Loss prevention: the .99 pricepoint was a very early form of loss prevention,nventory control, and accounting.
There was a fear that when pricing something at 1.00 would result in the cashier pocketing the money, whereas a .99 item would mean that he would have to open the register and give a penny in change. Not a lot of registers printed receipts back then.

You can also check the amount of items based on the day's take, using simple math. Example, if the total till take ended in .56 it means that 44 (or 144) items were sold, regardless of the amount of customers.

That price point stuck, but it was really helpful to run a business efficiently. (Quora)

* Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. The theory is this drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points. (WIKI)

Why owning a commodity ETF (like GLD) might not be the best approach

Till now I was of the opinion that owning the physical commodity of something like Gold was best achieved by owning an ETF that buys and manages physical gold (GLD, SGOL).

There have been many articles that discuss the best way to invest in gold including a recent article that discusses why we should invest in gold rather than gold miners (GDX, GDXJ).

However an important point to note that is not captured is described in the prospectus of the GLD manual which will eventually play a dominant role in the valuation of the ETF:
The amount of gold represented by the Shares will continue to be reduced during the life of the Trust due to the sales of gold necessary to pay the Trust’s expenses irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of gold.
Each outstanding Share represents a fractional, undivided interest in the gold held by the Trust. The Trust does not generate any income and regularly sells gold to pay for its ongoing expenses. Therefore, the amount of gold represented by each Share has gradually declined over time. This is also true with respect to Shares that are issued in exchange for additional deposits of gold into the Trust, as the amount of gold required to create Shares proportionately reflects the amount of gold represented by the Shares outstanding at the time of creation. Assuming a constant gold price, the trading price of the Shares is expected to gradually decline relative to the price of gold as the amount of gold represented by the Shares gradually declines. Investors should be aware that the gradual decline in the amount of gold represented by the Shares will occur regardless of whether the trading price of the Shares rises or falls in response to changes in the price of gold. The estimated ordinary operating expenses of the Trust, which accrue daily commencing after the first day of trading of the Shares, are described in the Trust’s Annual Report on Form 10-K, incorporated herein by reference.
 
Disclaimer: All information on this site is provided for educational purposes only and none of this construes investment advice.

Apple slated to have $200Billion in cash by 2014

According to a recent projection by one of the analyst, Apple (aapl) is slated to have $200B in savings pretty soon.
Apple projected and historical cash per share

Comparison of Apple and Samsung smartphone and tablet sales in the US

During the recent patent wars, these giants have had to give out their numbers here

Smarphone sales comparison - apple (aapl) and samsung USA
Comparison of tablet sale performance - aaple and samsung in the US.
.As can be seen from the numbers in the US markets, Samsung sales numbers are not even close. Hence if Andriod is really doing well in the US, it should be selling a lot more of HTC and other manufacturers than Samsung.

Why investing in high growth (GDP) countries may not work

The simplest reason could be that for any amount of money invested, these countries typically growing economies like India and China have a high rate of equity dilution resulting in a decrease in the EPS (and hence a reduction in growth seen per share brought).

This item was originally discussed here.

This is also clearly seen from the plot below by an analyst at Morgan Stanley:
(click on fig to enlarge)

Country-wise comparison of the average earnings growth with the annual dilution  - highest for high growth countries.

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