Market Quotes by Mark Mobius – Partner at Mobius
Capital Partners
“Investors are always concerned about risk
particularly in times of market uncertainty or volatility. The “Value at Risk”
(VaR) calculations that banks and other institutions developed in order to
determine how much could be lost in the bank's trading positions on any given
day is based on historical volatility of markets. However, once financial
crises hit it becomes evident that losses can be much greater than the
what the models predicted.
Although the theory of
a bell-shaped curve distribution sounds good, the reality is that markets often
do not obey those theories. Investors can be lulled into feeling secure
when markets are moving up steadily and volatility is decreasing. At
such times it is tempting to pile more money into the markets,
thus causing them to continuously climb and exhibit low volatility.
However once the trend is broken and a “black swan” event takes
place volatility can skyrocket as the market gyrates up and down
violently.”
Market has made top and
trying to make another one (in a way signaling steep fall thereafter).
Short term investor who r invested should book profit
to avoid risk. With interest rate inching up domestically so as in US in light
of increase in crude prices, market looks like building up for major
corrections.
Debt Fund investors as always would be benefitted on
three year holding period with tax benefits.
Happy Investing
