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Sunday, October 31, 2010

What is Understand, Survive and Thrive? - Part 2

"Understand, Survive and Thrive" will explore the field of finance from a unique perspective. It will fuse multiple financial analysis techniques ranging from Cycle theory to Elliott Waves, and from Fundamental analysis to Technical methodologies, to decipher erratic stock market behaviors. Since stock market gyrations have wide ranging global policy impact, it is imperative to learn about their causes apart from what is stated by the media.

In this journey, engineering psychology - creativity and ingenuity - will be our most active companion. It will be used to justify, debunk or combine different financial analysis techniques. Alongside such stimulating discussions, I will try to bring forward global stock market analysis. This analysis will be based on the combination of above mentioned techniques, as implemented by various stock market gurus. 

Furthermore, this blog will leverage the human behavioral aspect of stock market, to narrate and analyze real-world experiences. These experiences will enlighten the readers about broader impact of our everyday decisions on the social and investment realm.   

In short, the goal of this blog will be to address current financial markets and to increase awareness about the importance of engineering based creative financial analysis. In Part 3, I will discuss the timings of these posts and proposed content for the next month. 

Saturday, October 30, 2010

What is Understand, Survive & Thrive? - Part 1


Engineering is a very unique field. It encourage analytical reasoning, fosters conspicuous contemplation,  and  promotes creative designs. This combination leads an individual to think about various aspects of life, job, investments and above all the notion of success, in a very different way. While I was an undergraduate, I started experiencing these engineering induced changes in my personality.


Over the last 3 years, I have experienced a logical evolution of my personality. This evolution was accelerated by the economically problematic and self-enlightening year of 2008. As a result of these events, I started studying economics, finance, financial mathematics, socio-economics, human psychology, modern cultures and overall analysis of global events. Throughout this analysis, I have tried to relate my findings with real life experiences.


Therefore, in "Understand, Survive and Thrive", I would like to capture and share this continuously evolving analysis of life, economics and sociology. The theme of this blog will be to understand some of the realities of our world from a socio-economic perspective and how can one use this perspective to benefit his/her life.  


In the 2nd Part of "What is Understand, Survive and Thrive," I will further discuss some of the topics that will be discussed on this website.



Friday, October 29, 2010

The Week Before November 2010

It is not only interesting to see the financial world in a state of euphoria based on possibility of QE2, it is also very intriguing to witness the changes in the American political scenario. Since I started analyzing financial markets, three years ago, I have been amazed by their similarity to the human psychology. Humans inherently abhor uncertainty and try to minimize it as much as possible. And for this very reason several corporations have risk-management units who try to actively mitigate risk. Although at surface this makes sense, this risk-management or "the fear of the unknown" can also result in irrational, untimely and hasty decisions, which can prove to be catastrophic.

A similar situation is being faced by the US Fed today. In order to stimulate the economy they pumped trillions of dollars in the US economy. However, the overall monetary based shrunk instead of increasing. This is classic example of an underlying deflationary economic current. Now Fed is on the verge of a second round of Quantitative Easing. I personally think that this is a decision, which if not work, can have catastrophic impact on the US economy and the global socio-political environment.