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Investment Scams: Bulletin Boards

There are literally hundreds of investment boards where anyone can rant, rave, or post BS. Online bulletin boards (BBs) come in various forms, including newsgroups, usenet, or web-based boards. Some of the larger BBs, like those found on sites such as Raging Bull, Boards on Yahoo! Finance, and Silicon Investor, see thousands of messages posted on an hourly basis.

While there are many valid and useful posts on these boards, a large number of tips turn out to be bogus. Fraudsters most often use a pump and dump scheme on BBs by pretending to reveal inside information about big upcoming announcements, great new products, or lucrative contracts. The opposite can be done too. If fraudsters hold a short position in a company, they will try to spread negative rumors in the hope that investors will panic and push prices down.

Here's the tricky part about BBs: anonymity. You don't know for sure who you're dealing with and how credible they are. People claiming to be unbiased observers who've carefully researched a company may actually be company insiders, large shareholders, or paid promoters. A single person can easily create the illusion of widespread interest in a small, thinly-traded stock by posting a series of messages under various aliases.

In the aftermath of the dotcom bubble, bulletin boards experienced a dramatic drop in traffic. Thankfully, many investors realized they couldn't believe everything they read online. But that's not to say there is no valuable information on BBs. Before Enron went bankrupt, posts were made online that revealed many of the fraudulent practices taking place at the energy giant. Regrettably, at the same time, there were countless posts that were bullish on Enron. It's nearly impossible to sort out the valuable posts from the fake ones.

Investment Scams: Newsletters

Almost every stock pick site offers a newsletter that is supposedly full of useful insights and great stocks. There are many good newsletters out there, but some are just promoting stocks under the guise of presenting investors with "free unbiased information."

In fact, many companies hire employees or pay people to write online newsletters to promote their stock. In theory, this practice is not illegal. But federal securities laws require newsletters to disclose who paid them, the amount paid, and the type of payment. Most fraudulent newsletters fail to provide this information. Instead, they lie about the income they receive, their independence, their research, and their historical results. They stand to profit handsomely if they convince investors to buy or sell particular stocks. Newsletters also use the pump and dump technique discussed earlier. With enough people on the list, it is possible to create movement in the price of small stocks.

Even worse is junk e-mail or "spam." As spam costs next to nothing to create, it has become the tool of choice for many fraudsters. Often these messages consist of “get-rich-quick” schemes and offer "guaranteed results." If the sender is unfamiliar to you or the message is addressed generally (great investment tip) it is likely a scam. Brokers and traders don't give away good tips to random people for free. Besides, no reputable company would spam to get their name out. The smartest thing you can do is hit your delete button.

Identifying these shady e-mails isn't tough. Besides promising huge results with no risk, look for CAPITALIZED LETTERS WITH MANY EXCLAMATION MARKS!!! FOR SOME REASON SCAM ARTISTS THINK YOU'LL LISTEN IF THEY WRITE LIKE THEY ARE SCREAMING AT YOU!!! Another clue is when the e-mail comes from free e-mail providers such as yahoo.com or hotmail.com. Spammers use these addresses to hide where the original message comes from.

Very few of the scams on the Internet are new. Most of the swindling techniques we see today originated long ago as telemarketing, direct mail, or even door-to-door selling schemes. But the Internet adds another troubling dimension to these old tricks. For example, a fancy Web site can create the illusion of a large and reputable company, especially if it provides links to legitimate sites.

Here are some of the largest and most successful investment scams:

* Ponzi Scheme - A type of pyramid scheme, this is where money from new investors is used to provide a return to previous investors. The scheme collapses when money owed to previous investors is greater than the money that can be raised from new ones. Ponzi schemes always collapse eventually.

* Pump and Dump - A highly illegal practice where a small group of informed people buy a stock before they recommend it to thousands of investors. The result is a quick spike in stock price followed by an equally fast downfall. The perpetrators who bought the stock early sell off when the price peaks at a huge profit. Most pump and dump schemes recommend companies that are over-the-counter bulletin board (OTCBB) and have a small float. Small companies are more volatile and it's easier to manipulate a stock when there's little or no information available about the company. There is also a variation of this scam called the "short and distort." Instead of spreading positive news, fraudsters use a smear campaign and attempt to drive the stock price down. Profit is then made by short selling.

* Off Shore Investing - These are becoming one of the more popular scams to trap U.S. and Canadian investors. Conflicting time zones, differing currencies, and the high costs of international telephone calls made it difficult for fraudsters to prey on North American residents. The Internet has eroded these barriers. Be all the more cautious when considering an investment opportunity originating in another country. It's extremely difficult for your local law enforcement agencies to investigate and prosecute foreign criminals.

* Prime Bank - This term usually describes the top 50 banks (or thereabouts) in the world. Prime banks trade high quality and low risk instruments such as world paper, International Monetary Fund bonds, and Federal Reserve notes. You should be very wary when you hear this term--it is often used by fraudsters looking to lend legitimacy to their cause. Prime bank programs often claim investors' funds will be used to purchase and trade "prime bank" financial instruments for huge gains. Unfortunately these "prime bank" instruments often never exist and people lose all of their money.

Flowers arranged in tall containers have their own grace. This arrangement is made in a Bamboo vase that I bought in Cauvery Nisargadhama. The measurements for the flowers to be cut is per Ikebana rules.




Materials Required:

1 tall vase
3 Gladioli
3 Bulrushes
3 Golden Rods
2 Philodendron leaves

Method:



Fill vase with water. Cut first Bulrush into one and half the height of the vase and the other one as ¾ th of the first Bulursh and the third one as ¾ th of the second bulrush. Similarly cut the first Gladioli as ¾ th of the first Bulrush and the 2nd gladioli as ¾ th of the first Gladioli and so on. Likewise cut the first Golden Rod as ¾ th of the first Gladioli and the 2nd Golden Rod as ¾ th of the first Golden Road and so on..

Debit card fraud occurs when a criminal gains access to your debit card number and, in some cases, PIN, to make unauthorized purchases and/or withdraw cash from your account. There are many different methods of obtaining your information, from unscrupulous employees to hackers gaining access your data from a retailer's unsecure computer.

When your debit card is used fraudulently, the money is missing from your account instantly. Payments you've scheduled or checks you've mailed may bounce; you may not be able to afford necessities, and it can take awhile for the fraud to be cleared up and the money restored to your account.

How to Detect Debit Card Fraud

Fortunately, it doesn't take any special skills to detect debit card fraud. The easiest way to spot problems early is to sign up for online banking, if you haven't already. Check your balance and recent transactions daily. The sooner you detect fraud, the easier it will be to limit its impact on your finances and your life. If you see unfamiliar transactions, call the bank right away. If you're the forgetful type, start hanging on to the receipts from your debit card transactions so you can compare these against your online transactions.

If you don't want to bank online, you can keep tabs on your recent transactions via phone banking. In the very least, you should review your monthly bank statement as soon as you receive them, and check your account balance whenever you visit an ATM or bank teller. However, it can take much longer to detect fraud using these methods.

9 Easy Ways to Protect Yourself

While you may not have any control over hackers and other thieves, there are many things you can control that will help you avoid becoming a victim.

* Get banking alerts. In addition to checking your balance and recent transactions online daily, you can sign up for banking alerts. Your bank will then contact you by email or text message when certain activity occurs on your account, such as a withdrawal exceeding an amount you specify or a change of address.

* Go paperless. Signing up for paperless bank statements will eliminate the possibility of having bank account information stolen from your mailbox. Shredding existing bank statements and debit card receipts using a diamond-cut shredder when you're done with them will greatly reduce the possibility of having bank account information stolen from your trash.

* Don't make purchases with your debit card. Use a credit card instead, because it offers greater protection against fraud. If you do make debit card purchases, don't use your PIN - tell the cashier to select the credit option. The money for your purchase will still be withdrawn from your account right away, but you won't expose yourself to PIN theft. (If you want to make the switch to credit cards, read 6 Major Credit Card Mistakes to learn how to use these tools wisely.)

* Stick to bank ATMs. They tend to have better security (video cameras) than ATMs at convenience stores, restaurants and other places.

* Destroy old debit cards. Some shredders will take care of this for you.

* Don't keep all your money in one place. If your checking account is compromised, you want to be able to access cash from another source to pay for necessities and meet your financial obligations. (For more, see 5 ATM Scams That Can Break The Bank.)

* Beware of phishing scams. When checking your email or doing business online, make sure you know who you're interacting with. (See What Is A Phishing Scam And How Can They Be Avoided?)

* Protect your computer. Use firewall, anti-virus and anti-spyware software on your computer, and keep it updated regularly.

* Use a secured network. Don't do financial transactions online, when using your computer in a public place and/or over an unsecured network.

What to Do if it Happens to You

If you learn that your debit card information has been compromised, contact your bank immediately to limit the damage the thief can do, and limit your financial responsibility for the fraud. Make contact immediately by phone, and follow up with a detailed letter stating the full name of the bank employee you spoke with, details of the fraudulent transactions, and any ideas you have about how your account may have been compromised. Ask your bank to waive any NSF fees that may be incurred because of the fraud, and to restore the fraudulently withdrawn funds to your account.

Hopefully, you won't have any trouble resolving the issue directly with your bank, but if you do, you can contact a legitimate consumer advocacy group such as Privacy Rights Clearinghouse. There are also government organizations to contact if your bank isn't cooperating. The agency to contact depends on the type of bank you use.
If you're not sure which one to call, start with the OCC. (If you're not getting along with your bank, don't be afraid to switch.)

If you will have trouble making any of your monthly payments because of the fraud, contact those creditors, explain the situation and ask if they can do anything for you. This step is extremely important, as failure to do so implies your unwillingness to pay them. However, if they know about your hardship, they may be willing to work with you to reschedule payments.

Conclusion

Anything you can do to make a thief's work more difficult, whether it's staying on top of your balance, spreading your cash out across multiple accounts or making purchases with credit cards instead of debit, will help safeguard your checking account and decrease your chances of becoming a victim of debit card fraud.

Rice tossed in a seasoning with Onions and Tomatoes.

Time Required: 20 Miutes
Serves: 2




Ingredients:

4 Cups Cooked Rice
2 Onions, Chopped finely
2 Tomatoes, Chopped finely
2 sprigs Curry leaves, Chopped finely
6 Green Chilies, Chopped finely
4 sprigs Coriander leaves, Chopped finely
½ Cup fresh grated Coconut
2tbs Oil
1tbsp Kadalebele/Bengal Gram
1tbsp Uddinabele/Black Gram split
1tsp Mustard Seeds
½ tsp Turmeric Powder
Salt to taste

Method:

Heat Oil and add Kadalebele/Bengal Gram and Uddinabele/Black Gram split and when they turn pink add Mustard Seeds and when they splutter add Turmeric Powder, Curry leaves, Green Chilies, Onions and sauté for two minutes. Next add Tomato and sauté for a minute. Add Salt, Coconut, Coriander leaves and Rice and mix well. Serve hot with chutney or raitha.

This is Dutch style of flower arrangement. The materials used range from fruits, flowers and candles. The different hues of flowers and fruits complement each other with candles lighting up the arrangement. This arrangement is perfect during Diwali.




Materials Required:

3 Red Apples
2 Yellow Pears
2 Small Bananas
5 Red Roses
2 Candles
Few Stalks of Cyprus
1 block of Sponge soaked in water for at least half an hour
1 basket
A small plastic sheet

Method:

Line the bottom of the basket with a plastic sheet. Place the sponge in the middle. Arrange the fruits first on the sides of the sponge. Cut the Roses in different lengths. Stick the Roses in any pattern you desire into the sponge. Cut the Cyprus stalks into long and short stems. Stick these on the other later and camouflage the sponge. Stick Candles into the sponge and light it up.

Lack of organization can harm your finances as much or more than being short on cash. Losing bills can lead to late fees, and not keeping track of your bank account could cause overdraft fees. The following are some tips that will help you stay on top of your bills and accounts, and will lead to greater organization and, most importantly, less spending.

1. Pull Out Your Budget at Least Once Per Month

Your bills could change on a monthly basis. Revise your budget as bills come in and adjust other expenses to make up for it, so you don't accidentally overdraw your bank account. For instance, some months and seasons bring higher electrical bills than others. Let's say your electric bill is a $100 more in June than it was in May. Your budget may be based on spring electricity usage or the usage from a month where you had a lower electric bill. Since June's electric bill signals a change in expenses, you take out your monthly budget to see what other area of your budget you could adjust so you can pay your electric bill.

To save $100, you exchange two dinners out for a bike ride with a packed lunch. You might also grab self-made or deli-made sandwiches to bring to a concert in the park instead of going out for pricey drinks. The best part about having to cut down on one expense to pay for another is it will force you to break traditions and try something different.

What if you don't have a budget? Create one today! Start by writing down your budget the way you'd like your expenses to unfold. At the end of the month, start tweaking your budget by adjusting other expenses when one expense is more than you expected. (For more budgeting tips, check out Get Your Budget Into Fighting Shape and 6 Months To A Better Budget.)

2. Use Financial Software

Financial software isn't just for investments. You can find free, scaled-down financial software on the web to help you keep track of your daily expenses. Within the programs, you can get detailed information as to where your money is actually going. When choosing budgeting software, verify on the Better Business Bureau website that the service you consider has good customer service records.

3. Have One Place for Bills

Even if most of your bills arrive electronically, you still need a place for bills that come by mail. Why would you have bills show up by mail? Homeowners may not get property tax or homeowners insurance bills electronically because these bills are paid on an annual basis.

For storage, keep your bills wherever you normally write checks or pay bills online. Throw out bills once they are paid, preferably after shredding them for privacy and identity theft protection.

You can also keep scanned copies in your computer. If you don't like filing bills by hand, scan them and save a copy in file format. Give the file a name that says exactly what the bill is and keep all bills in a file labeled bills.

4. Open Bills and Pay Them the Same Day You Receive Them

If you have money available in your bank account and you don't have other debit card or bill pay charges coming through that could cause an overdraft, pay your bills the same day they are received.

Pay extra attention to paper bills that normally come electronically. You don't want to pay a bill twice because you received a duplicate by mail. Always call your creditor when a paper bill arrives when you think you have an automatic payment scheduled or electronic billing set up.

5. Have a Checklist for Bills You Are Expecting

Neither mail nor email is perfect. Create a checklist at the beginning of the month with every bill you are expecting. You can keep it on your desk, bill paying area or create a file on your computer.

6. Consult with Anyone with Whom You Share Accounts

Whether it's your spouse, significant other or relative, you can easily bounce a check or debit card payment if you don't know how much the other has been spending.

Example: Your spouse has the day off and decides to go to lunch and golfing with a buddy. When you get home, you're told about a great game of golf. What you're not told is the $150 spent amidst day-off festivities. You end up bouncing a direct-debited student loan payment because your bank account had $100 less in it than you thought.

7. Verify that Your Paycheck is Direct Deposited

If you have direct deposit, you get used to your paycheck being there on paydays. However,sometimes your check may not arrive electronically on the correct date. Don't start spending your paycheck until you've checked your account balance.

8. Have Two Bank Accounts

Use one account for spending. Use one for bills. This way you can prevent yourself from accidentally spending bill money on a night out that should have gone towards rent.

Conclusion

Missing bill payments because of lack of organization is the easiest financial problem to fix. You don't have to use all eight of these tips, as long as you pick an organizational system that you can stick to every month.

Identity theft occurs so frequently that the Federal Bureau of Investigation cites it as "America's fastest growing crime problem." Thieves steal and fraudulently use the names, addresses, Social Security numbers (SSNs), bank account information, credit card numbers and other personal information of some 10 million Americans each year, according to the Federal Trade Commission. Learning about how thieves get your personal information is the first step toward protecting yourself from this devastating attack on your financial well-being.

At the Corporate Level

Thieves make headlines when they break into large consumer databases and steal hundreds or thousands of names, but that's not the only way identity theft occurs on a corporate level. It can occur also from the inside. Insiders may use an employer's access to credit reporting information to get a hold of confidential personal data, or steal information directly from the employer's files or trash. Employees can also be conned or bribed by an outsider to obtain information.

At the Personal Level

Identity theft is less publicized when it occurs on the individual level, but the number of ways that fraud can occur on this level is just as distressing. The simplest method involves stealing or finding your wallet, or digging through your trash. Identity theft can also be as simple and easy as peering over someone's shoulder as they use the ATM at the local bank.

More sophisticated methods include targeting the information of the deceased through the use of obituaries, stealing or diverting your mail and obtaining credit card or bank account information via skimming. This is a high-tech theft that uses an electronic device to steal credit card or bank account information. Skimming generally occurs when your credit card is used to make a purchase, and the person processing your card uses a skimmer to capture personalized access information. It has also been found on ATMs.

Phishing is one of the most widely publicized methods of personal identity theft. Phishers create a website that looks very similar to the site of a legitimate enterprise, sending emails out to lure unsuspecting individuals to enter their personal data, which is then used by the thieves.

Once Your Identity Is Stolen

When an identity thief steals your personal data, the thief "becomes" you by assuming your financial identity. The less sophisticated criminals go on a spending spree with your credit cards, sometimes opening new credit cards in your name, writing checks or establishing cell phone accounts.

The more sophisticated thieves will do more than simply spend your money; they'll use your name and identity to do anything they want or need. They'll obtain personal identification, such as a driver's license, and use it to take out car loans, open bank accounts and even file for bankruptcy to, say, avoid eviction from a house or apartment, or get out of making payments on debts they've created in their victim's name. Some of these thieves will also use your identity when they're arrested.

Offense Is the Best Defense

While high-profile hackings of corporate databases demonstrate that nobody is completely safe from identity theft, there are precautions that can minimize the odds of being victimized.

* Protect Your Social Security Number

You SSN is a critical piece of personal information. Do not print it on any form of personal identification. Never have it printed on your checks; simply write it on the check in the rare occasions it's needed. Never carry your Social Security card in your wallet, and avoid using your SSN as a personal identifier if at all possible. Although colleges, medical clinics, purveyors of hunting/fishing licenses, employers and other entities often request your SSN, think twice before giving it out. You don't know who will have access to that data when you're not around.

* Protect Your Mail

To make your mailbox a less attractive target for identity thieves, try to reduce the amount of unsolicited offers. Opt out of pre-approved credit card offers and insurance by calling 888-5OPT-OUT or by logging onto https://www.optoutprescreen.com. Choose five-year or permanent opt out. When you do receive offers in the mail, shred them before you discard them.

Remember to cancel mail delivery when you go on vacation. If you don't, that mountain of mail makes a tempting target. Outgoing mail requires protection too. When you write a check and mail it to your credit card company, don't include information that is complete enough for someone to use: only write the last four digits of your account number - your credit card company has all the information they need to identify you.

* Protect Your Trash

The items you discard, including credit card offers, ATM receipts, bank statements, credit statements/receipts and utility bills, all contain personal information. With a bit of effort, thieves can collect this information and use it to steal your identity. To minimize this possibility, buy a shredder and use it. Similarly, when you discard of old credit cards, be sure to destroy them completely first.

* Beware of the Telephone

High-pressure callers often demand personal information with scams such as the promise of an extravagant vacation at an attractive price if only you will act now or lose the offer. To avoid these scams, never provide personal information over the phone if you did not initiate the call. To limit the number of these calls you receive, ask the callers if you can join the do-not-call list. When you do receive a call, simply hang up.

* Safeguard Your Computer

Never respond to unsolicited requests for personal information and always use virus protection. Protect your computer with a password, change it frequently and don't share your password with anyone. From time to time, search the internet for your name and the last four digits of your SSN. You never know what you might find.

* Protect Your Wallet

On the backs of your credit cards, write "photo ID required" in place of the signature. If your credit cards are stolen, it will be more difficult for a thief to make purchases. Photocopy everything in your wallet, including credit card numbers and the contact numbers of the issuers, and store this information in a secure location. If your wallet is lost or stolen, all the information you'll need to cancel your credit cards will be readily accessible.

* Protect Deceased Relatives

It's a sad fact of life that even the dead are not immune to identity theft. When a loved one passes away, obtain a dozen copies of the official death certificate, and notify all financial institutions, insurance companies, credit card companies, loan holders, etc. Be sure to remove the deceased relative's name from all joint accounts. Finally, contact the credit reporting agencies and request a deceased alert. This places a notice on the deceased's credit report, telling companies that the person has died and cannot be issued credit.

* Report Suspicious Activity

Review your credit report at least once a year and contact your creditors immediately if you note suspicious activity. If, at anytime, you suspect that an attempt has been made to steal your identity, contact the authorities. File a police report, and file a complaint with the U.S. Federal Trade Commission, whom you can reach at 1-877-IDTHEFT.

Conclusion

Being the victim of identity theft can be extremely devastating not only because it's your money being stolen, but your name. Identity thieves can be very skilled at finding their targets and then exploiting their findings. For this reason, to protect yourself you need to stay all the more alert and knowledgeable.

In a forest, on the outskirts of Benaras, there lived a beautiful golden deer. He was called King Banyan Deer and was the leader of a herd of five hundred deer. Not very far off, in the same forest was King Branch Deer who was also the leader amongst another five hundred deer. He was also extremely beautiful with a coat of a shiny golden hue and sparkling eyes.

Outside this beautiful forest, in the real world, there reigned a King who loved to eat meat at every single meal. He was King Brahmadatta of Benaras. Not only was he fond of hunting, but he also enforced the same on his subjects. He forced them to leave their own businesses and join him regularly on his hunting spree each and every morning.

After awhile the villagers got sick of this regular routine as they had much better things to do with their lives. Besides, their work and means of livelihood had also begun to suffer. They realised that they must find a solution. Together they came up with a plan.

They decided to grow plants, sow crops and dig water holes in the royal park itself. Then they would drive a number of deer into the confines of the park and shut the gates. In this way the King could hunt at leisure and would not require any further help from his obedient subjects.

So at first they went about preparing the royal park for the deer. Then they went into the forest armed with weapons and sticks in order to drive the deer into the royal park. They surrounded the territories of both the herds, those of King Banyan Deer as well as King Branch Deer, and drove them into the royal park, with shouts of glee as they beat their sticks on the ground and waved them in the air. As soon as both the herds were in, the gates were shut and the deer entrapped.

They then went to their King and told him that as they could not accompany him any more on his hunts they had successfully managed to entrap a number of deer in the royal park for his royal pleasure. The King was absolutely thrilled when he set eyes on the great number of deer in the royal park.

While gazing at them his eyes fell on the two beautiful golden deer and he at once decided to spare their lives. He issued an order that they were not to be shot at any cost. Each day after that, either the King or one of his hunters would shoot arrows at the deer. The deer would scatter wildly in every direction and get hurt in the ensuing stampede. So one day King Banyan Deer and King Branch Deer put their heads together and came up with a plan. They realised that each day their herds were getting wounded in great numbers and some were getting killed. Even though death was inevitable they could at least try to save the living ones from unnecessary pain and torture.

So they decided to send a deer to the royal palace to be slaughtered and served to the king each and every day. The pact was to alternate between the two herds. In this way at least the rest of the deer would be spared unnecessary torture. This system continued for some time. Each day a deer was sent to the royal palace to be slaughtered by the royal cook. And the rest of the deer were allowed to live in peace until it was their turn.

One day it was the turn of a young female deer with a newborn baby. She belonged to the herd of King Branch Deer. She was worried that after she was killed there would be no one to take care of her child who was still too young to look after itself. So she approached her king with the plea that he send another deer instead of her that day and she would willingly go to the slaughter after her fawn was old enough to look after himself.

But King Branch Deer would not listen to her plea and told her to accept this as her fate as he could not ask another deer to replace her on the execution block. The mother doe looked at her baby and just could not take a step towards the palace. So she approached King Banyan Deer with her plea. King Banyan Deer looked at her with great compassion and told her to go look after her baby, as he would send another in her place.

Then King Banyan Deer himself walked to the palace and placed his head on the execution block. The royal cook was shocked to see him and remembering the King's orders, went running to the King to ask him what was to be done. The King came down to see what was happening. On seeing King Banyan Deer he went up to him and gently asked why he was here. King Banyan Deer related the story of the fawn and the mother doe and told him that as he could not order another to take her place, he had decided to do it himself. The King was highly impressed with this supreme sacrifice and the great love and compassion that this King of deer possessed. So he decided to not only spare his life but that of the mother doe as well.

But King Banyan Deer was not satisfied. He asked that the lives of the other deer be spared as well. So the king granted him his wish. Then he asked about all the other four-footed animals in the forest and then about the birds in the sky and the fish in the sea. And King Brahmadutta agreed to spare the lives of all.

King Banyan Deer thanked him from the bottom of his heart and returned joyfully to the park. The gates were opened wide and both the herds were set free. Needless to say they lived peacefully and happily ever after.

Investors have a knack for piling into investments at the top and selling at the bottom. Many investors get caught up in media hype or fear and buy or sell investments at the peaks and valleys of the cycle. Why does this type of emotional investing happen and how can investors avoid both the euphoric and depressive investment traps? Read on for some tips on how to keep an even keel - and keep your investments on track.

Investor Behavior

The behavior of investors has been well documented; there are numerous theories that attempt to explain the regret and overreaction that buyers and sellers experience when it comes to money and the potential gains and losses on that money. Investors' psyche overpowers rational thinking during times of stress, whether that stress is a result of euphoria or fear.

The typical non-professional investor is putting his hard-earned cash at stake and, while hoping for a gain, wants to protect that cash against losses. Investors get investment "information" from many sources, such as mainstream media, financial news, friends, family and co-workers. Oftentimes investors get enticed by the market during periods of market calm (low volatility) and prolonged bull markets.

Bull markets are periods when the market tends to go up indiscriminately. During such times of market exuberance, investors tend to listen to stories from friends or family members about how much money they are making in the market, creating a stir and compelling those not invested to test the waters. Likewise, when investors read stories about a bad economy or hear reports about a volatile or negative market period, fear takes over and they sell at the bottom. (Not all investors are mentally prepared for when a much-awaited bull market finally comes charging in.

Bad Timing

The lag between when an event occurs and when it is reported is what typically causes investors to lose money. The media will report a bull market only once it has already hit; unless the trend continues, stocks will retract in upcoming periods. Investors, influenced by the reports, often choose these times of premium valuations to build up their portfolios. It is worrisome when the daily stock market report leads off the mainstream news because it creates a buzz and investors make decisions based on "opinions" that are often outdated. Market uncertainty creates fear and brings about an atmosphere of emotional investing.

Time Tested Theory

The theory that many market participants buy at the top and sell at the bottom has proved to be true based on historical money flow analysis. Money flow analysis looks at the net flow of funds for mutual funds. Over a period from 1988 through 2009, money flow analysis showed that when the market hit its peak or valley, money flows were at the highest levels.

Money continued to flow into funds until the market hit bottom, and only then did investors start to pull money out of the market and money flows turned negative. The net outflows peaked at market bottoms and continued to be negative even as the market moved into an upward trend. Because the market was shown to fall before funds were sold, and funds were often reinvested after the market had alreayd moved up, it's clear htat investors often fail to time their trades in the most beneficial manner.

A Bright Spot

Despite the strong tendencies that investors portray at the peaks and valleys, they have gotten other periods correct. Throughout the 1990s, there was a steady flow of funds into the market during a period when the market was on a prolonged bull run. Likewise from 2004 to 2007, during another strong bull market, investors poured money into the market. So it can be hypothesized that during periods of very little volatility (such as prolonged bull markets), investors become more comfortable in the market and begin to invest. However, during periods of volatility, or when bull or bear markets begin and end regularly, money flows tend to reflect confusion and the timing of the flows becomes mismatched with actual market movement.

Strategies to Take the Emotion Out of Investing

A 2009 study of investment behavior by DALBAR showed that over the 20-year period from January 1989 to December 2008, the S&P 500 returned an average annual 8.4% but the average stock investor returned only 1.9% annually. The evidence suggests that emotional investing gets the best of the typical investor during periods of uncertainty. There are strategies, however, that can alleviate the guess-work and reduce the effect of poorly timing fund flows.

The most effective tends to be the dollar-cost averaging of investment dollars. Dollar cost averaging is a strategy where equal amounts of dollars are invested at a regular, predetermined interval. This strategy is good during all market conditions. During a downward trend, investors are purchasing shares at cheaper and cheaper prices. During an upward trend, the shares previously held in the portfolio are producing capital gains and fewer shares are being added at the higher price. The key to this strategy is to stay the course- set the strategy and don't tamper with it unless a major change warrants revisiting and rebalancing the established course.

Another technique to diminish the emotional response to market investing is to diversify a portfolio. There have been only a handful of times in history when all markets have moved in unison and diversification provided little protection. In most normal market cycles, the use of a diversification strategy provides downward protection. Diversifying a portfolio can take many forms - investing in different industries, different geographies, different types of investments and even hedging with alternative investments like real estate and private equity. There are distinctive market conditions that favor each of these subsectors of the market, so a portfolio made up of all these various types of investments should provide protection in a range of market conditions.

Conclusion

Investing without emotion is easier said than done, especially because uncertainty rules the market and the media. Evidence suggests that most investors are emotional and maximize money flows at the wrong times - a surefire way to reduce potential returns. Strategies that eliminate the emotional response to investing should produce returns that are significantly greater than those indicated by the typical investor responding to the market rather than proactively investing in the market. Dollar-cost averaging and diversification are two proven strategies within a multitude of other alternatives to reduce an investors emotional reaction to the market.

As you all know, Emperor Akbar was very impressed with Birbal�s wisdom and greatly enjoyed his quick wit. One fine morning when Akbar was especially pleased with Birbal, as a gesture of appreciation, he promised to reward him with many valuable and beautiful gifts.

However, many days passed, and still there was no sign of even one gift. Birbal was quite disappointed with the king. Then one day, when Akbar was strolling down the banks of River Yamuna with his ever faithful Birbal at his side, he happened to notice a camel passing by. He asked Birbal why the neck of the camel was crooked. Birbal thought for a second and promptly replied that it might be because the camel may have forgotten to honour a promise. The holy books mention that those who break their word get punished with a crooked neck; perhaps that was the reason for the camel's crooked neck.

Akbar soon realised his folly of making a promise to Birbal for gifts and not honouring it. He was ashamed of himself. As soon as they returned to the palace he immediately gave Birbal his justly deserved reward. As you can see, Birbal always managed to get what he wanted without directly asking for it.

This is one more interesting story from the Hitopadesha Tales. Once upon a time, there lived a Lion by the name of Madotkata in a forest. Among his followers, a Jackal, a Crow and a Wolf had developed friendship with him. However, all the three had a selfish motive behind this so-called friendship. They knew that the Lion was the King of the forest and friendship with such fierce creature would always help them. To meet their selfish ends, they started obeying and were always available at the service of the Lion.

They didn’t have to make any efforts to search for their food, as the Lion used to give his leftover meals to them. Moreover, they became powerful as they were next to the King of the forest. So like this, all the three selfish friends were passing their days happily being the friends of the Lion. One day, a Camel, who came from some distant land, lost his way and entered the same forest where these friends lived. He tried his best to find out the way, but could not make it.

In the meantime, these three friends happened to pass through the same way where the Camel was wandering. When they saw the Camel, at once it came to their mind that he didn’t belong to their forest. The Jackal suggested to his other two friends, “Let’s kill and eat him”. The Wolf replied, “It is a big animal. We could not kill him like this. I think, first we should inform our King about this Camel”. The Crow agreed upon the idea given by the Wolf. After deciding, all of them went to meet the Lion.

On reaching the Lion’s den, the Jackal approached the Lion and said, “Your Majesty, an unknown Camel has dared to enter your kingdom without your consent. His body is full of flesh and he could make a nice meal for us. Let’s kill him”. The Lion roared loudly on hearing this and said, “What are you saying? The Camel has come for refuge in my kingdom. It is unethical to kill him like this. We should provide him the best shelter. Go and bring him to me”. All of them got dispirited to hear such words from the King.

They unwillingly went to the Camel and told him about the desire of the Lion, who wanted to meet him. The Camel was scared to know about the strange offer. He thought that his last moment had come and in a little while he would become the meal of the Lion. As he couldn’t even escape, so he decided to meet the Lion and left everything on the destiny. The selfish friends escorted the Camel to the Lion’s den. The Lion was happy to see the Camel. He welcomed him warmly and assured him of all the safety in the forest during his stay.

The Camel was totally amazed to hear the Lion’s words. He got very happy and started living with the Jackal, the Crow and the Wolf. One day, when the Lion was hunting for food, he had a struggle with a mighty Elephant. The Lion got badly injured in the struggle and became incapable of hunting for his food. Stricken by bad luck, the Lion had to sustain without food for days. Due to this, his friends too had to go hungry for days as they totally depended on the Lion’s kill for their food. But the Camel was satisfied grazing around in the forest.

All the three friends got worried and discussed the matter among them. On reaching a conclusion, they approached the Lion and said, “Your Majesty, you are getting weak day by day. We can’t see you in this wretched condition. Why don’t you kill the Camel and eat him?” The Lion roared, “No. How can you think such thing? He is our guest and we should not kill him. Don’t give such suggestions to me in future”. As the jackal, the crow and the wolf had set their evil eyes on the camel; they met once again and devised a plan to kill the Camel.

They went to the Camel and said, “Dear Friend, you know our King has not eaten anything from the past many days. He is unable to go for hunting due to his wounds and sickness. Under such circumstances, it becomes our duty to sacrifice ourselves to save the life of our king. Come with us, we will offer our bodies to make his food”. The Camel didn’t understand their plan, but innocently he nodded in favor of their plan. All of them approached the den of the Lion.

First of all, the Crow came forward and said, “Your Majesty, we didn’t succeed in getting any food for you. I can’t see you like this. Please eat me and make me obliged”. The Lion replied, “Dear, I will prefer to die than to perform such a sinful deed”. Then, the Jackal came forward and said, “Your Majesty, Crow’s body is too small to satisfy your appetite. I offer myself to you, as it is my duty to save your life”. The Lion politely rejected the offer. As per the plan, now it was the turn of the Wolf to offer himself to the King.

So, the Wolf came forward and said, “Your Majesty, Jackal is quite small to gratify your hunger. I offer myself for this kind job. Please kill me and satisfy your hunger”. After saying this, he lay prostrate before the Lion. But the Lion didn’t kill any of them. The Camel, who was watching the whole scene felt reassured of his safety and also decided to go forward and complete the formality. He marched forward and said, “Your Majesty, why don’t you kill me. You are my friend. A friend in need is a friend indeed. Please allow me to offer you my body”.

The Lion found the offer quite appropriate, as the Camel himself had offered his body for food, his ethics were maintained. The Lion attacked the Camel at once, ripped open his body and tore him into pieces. The Lion and his friends ate the delicious flesh to their fill. They feasted on the poor Camel for days together.

Moral: Beware of Mean Friends.

Once upon a time a family of crows lived in a huge banyan tree. There was a Father Crow, a Mother Crow, and many baby crows.

One day a huge snake came to live in the hole at the bottom of the tree. The crows were unhappy about this, but could do nothing.

Soon Mother Crow hatched a few more eggs and some more baby crows were born. When the crows flew out in search of food, the snake ate up the babies. When the crows returned, they could not find their babies. They hunted high and low, but to no avail.

After a few months, Mother Crow gave birth to some more baby crows. This time Mother Crow stayed home when Father Crow went out in search of food. Ignoring the fact that Mother Crow was keeping a watchful eye on her babies, the snake still slithered up the tree and attacked the babies. Mother Crow tried to fight the snake off, but she was not strong enough. Other crows came to her aid, but the snake had already eaten the little ones and crawled back into its hole.

When Father Crow returned, he found all the crows weeping. He consoled his wife who wanted to leave the tree house immediately. Father Crow said that this tree had been their home for many years and they must live here. He thought of asking a wise old fox for help in order to get rid of the snake.

The old fox came up with a brilliant plan. He told them to go to the river bank the next morning where the ladies of the royal family would be bathing. Their clothes and valuables would be kept on the river bank while the servants would be watching over them from a distance.

The fox asked the crows to pick up a necklace and while away making a raucous noise. This would make the servants chase them to the tree where the crows would drop the necklace into the snake's hole.

So the next morning when the crows flew to the river bank, Mother Crow picked up a pearl necklace and flew off as Father Crow cawed loudly to attract the servants' attention. The servants ran after Mother Crow and reached the banyan tree where they saw her drop the necklace into the snake hole. As the servants were trying to take the necklace out with the help of a long stick, the snake came out of the hole and hissed at them menacingly. The servants beat the snake to death. And so Mother and Father Crow lived happily ever after in the banyan tree.

Reminiscent of kindergarten projects, this basket starts out as a quart-size milk container. The waterproof carton is well-suited to be a vase. Water-soaked floral foam makes it easy to poke in an arrangement of -miniature carnations or flowers from your garden.

You will need:

* 1-quart drink carton
* Ruler
* Marker or pen
* Scissors
* Card stock: blue, green, yellow, pink, white
* White glue (or spray glue)
* Fiskars paper crimper
* Large-hole punch

Instructions:

1. Measure and mark 4 inches from the bottom on all sides of the carton; cut off the portion above the line. For the handle, cut a 1/2-inch-wide piece from three sides of the upper part of the carton.

2. Glue blue card stock to the basket, neatly piecing the paper if necessary to cover.

3. Cut a 1/2x10-inch handle from blue card stock and feed it through the paper crimper. Glue the blue crimped paper to the carton handle; trim excess paper. Glue the handle to the basket.

4. For polka dots, punch circles from card stock; glue the dots to the basket.

5. Cut three 3/4x11-inch pieces of green paper and feed them through the paper crimper. From one of the pieces cut a 6-inch length and a 3-inch length. Glue the ends of the 6-inch length together to make a ring. Wrap the 3-inch length around the center of the ring to form a bow. Glue the remaining two 11-inch pieces around the basket; trim excess. Glue the bow in place.

What you'll need:

* Empty toilet-paper tubes
* Ruler
* Pencil
* Kid-friendly scissors
* Bamboo skewers
* Paint
* Paintbrush
* Green card stock
* Glue
* Tissue paper


Instructions for Bright Painted Flowers

.1. Draw a ring 2 inches from the end of the tube. Repeat at other end. From each ring, draw lines every 1/2 inch. Snip along each line to make petals







.

2. Fold the petals back to create a flower. Paint the flower and bamboo skewers; let dry. Cut out green leaves and glue to the skewers








.

3. Push the skewer through one end of the flower's center until it just touches the other end. Crumple an 8-inch square of tissue paper and glue in the center

This is one more interesting story from the album of Panchatantra. Once upon a time, there lived an old lion. The lion, the king of the forest had grown old. He became frail and due to this, he could not hunt for his food. Many a times, he didn’t get even a single animal to eat. With each passing day he became more and more weak. He realized that like this he could not live for long. Somehow, he had to manage for the food, otherwise he would definitely die. He thought that how could he arrange for his food? After much of the thought process, ultimately he decided that he should have an assistant.

The lion thought that a fox would be the best person to handle this position. He summoned the fox and said, “Dear friend, I have always liked you because you are intelligent and clever. I want to appoint you as my minister and advise me on all the affairs of the forest”. The old lion also asked the fox, that he was the king of the forest; so he should not have to hunt for his food. In respect to this, the fox’s first duty as minister was to bring him an animal to eat everyday.

The fox didn’t trust the lion, but he could not even refuse the king. The fox said, “Your Majesty, I am happy, that you have chosen me to serve you. I accept your offer”. The lion was pleased to hear such words. After the conversation, the fox went out to find an animal for the lion. On the way, he met a fat ass. The fox went to the ass, “Friend, where have you been all these days? I have been looking for you for the past many days”.

The ass asked, “Why? What happened? Is everything alright?” The fox replied, “I have got good news for you. You are very lucky. Our king, the lion has chosen you to be his chief minister. He asked me to meet you and inform you about his decision.” Ass was scared of the lion and said, “I am afraid of the lion. He might kill me and eat me up. Why has he chosen me as his chief minister? I don’t even fit enough to be a minister. “

The clever fox laughed and said, “Dear, you don’t know your great qualities. You have a special charm of your own. Our king is dying to meet you. He has chosen you because you are wise, gentle, and hard working. You must not lose your greatest chance in life. Now, come with me and meet our great king. He will be really happy to see you”. So, the poor ass was convinced and got ready to go along with the fox.

As soon as they reached the lion’s den, the ass got scared and refused to move forward. At this, the fox said to the lion, “Your majesty, the chief minister appears to be very shy and hesitates to come near you”. The lion himself came forward and said, “I like such modesty”. He limped towards the ass. The ass got so scared that he ran to save his life. The lion became angry and shouted at the fox, “You have played a trick on me. I was so hungry that I wanted to eat him at once. Go and bring that ass back. If you don’t, I will kill you.”

The fox replied,” Your Majesty, you were in a hurry. You should have left it to me, to bring him near enough. But I will try again”. The fox went back to the ass and said, “You are a funny fellow. Why did you run away like that?” The ass replied, “I was too scared. I thought that the lion was going to kill me”.

The fox said, “What a fool you are? If the king wanted to kill you, he would have done so. You could not have escaped by running away. The thing is, the king wanted to tell you a secret about the kingdom and he did not want me, to hear it. Now, what will he think about you? Doesn’t matter, Come with me and apologize for your mistake. You don’t realize that by serving the king, you will be the second most powerful animal of our forest. Imagine, all the other animals will respect you and seek favors from you.”

In this way, the fox managed to attract the ass to go back to the lion. When the fox and the ass approached, the lion was hungrier than ever. But this time he kept a smiling face and said, “Welcome, my dear friend. It was unkind of you to have run away like that. Come near me. You are my chief minister.” As and when the ass came closer, the lion pounced on him and killed him instantly. The lion thanked the clever fox and was happy to get the food.

As the lion sat down to take his meal, the fox said, “Your Majesty, I know you are very hungry and it is time for your dinner, but the king must take a bath before his meal”. The lion thought it was a good idea and said, “You are right. I should go and bathe first. You keep a watch on the carcass of the ass”.

The fox silently sat down to keep a watch of the ass. He was very hungry and thought to himself, “I took all the trouble of getting the ass here. It is I who deserve the best portion of the meal”. Thus, the fox cut open the head of the ass and ate up the whole brain. When the lion returned and looked at the ass, he felt that something was missing. He found that the head of the ass had been cut open. He inquired from the fox, “Who came here? What happened to the head of the ass?”

The fox pretended to be innocent and reminded the lion, “Your Majesty, You have given a powerful blow on the head of the ass when you killed him”. The lion was satisfied with the answer and sat down to take his meal. Suddenly, he shouted,” What happened to the ass’ brain? I wanted to eat the brain first”. The fox smilingly replied, “Your Majesty, Asses have no brains. If this had any, he would not have come here a second time”.

What you'll need:

* Felted wool sweater
* Rotary cutter and cutting pad
* One 7-inch square of woven cotton fabric
* One 1x6-inch strip of cotton jersey
* Extra-long straight pins
* Size 16 yarn darner needle
* Persian wool or embroidery floss


Instructions for Cutie-Pie Pot Holders

1. For each pot holder, cut a 7-inch square from both the felted sweater and the woven cotton fabric. If the felt is thin, cut two or three squares to increase the thickness of the finished pot holder.

2. Place the wool and cotton squares wrong sides together with the cotton fabric on top. If you are using more than one wool square, stack them, carefully matching edges, and add the cotton square to the pile, right side up.

3. To make a loop for hanging the pot holder, fold the 1x6-inch rectangle of cotton jersey in half, short ends together. Insert 1-1/2 inches of the two short ends in one corner between the layered squares.

4. Pin all four corners in place, being careful that you have caught both ends of the hanging loop.

5. Thread your needle with a 2-yard length of Persian wool or embroidery floss. Beginning at the corner with the hanging loop, insert your needle under the cotton top layer and push down through the hanger and the wool bottom layers of fabric. Pull yarn through the bottom of the pot holder, concealing the knot under the top layer.


6. Make a reinforced X stitch through the hanger and all layers in that corner. Stitches should be neat and strong and can show on both sides of the pot holder. This stitch will anchor the hanger and keep the layers in place.

7. Finish your X stitch with thread coming out of the fabric about 1/2 inch in from the cut edges of the layers, and begin to blanket stitch around the edges of the pot holder. Be sure you are catching all the layers with each stitch. Keep your corners neat and square by double stitching the first and last stitches of each side seam

8. When you are back to where you started, tie an overhand knot close to the surface of the material. Run the needle and yarn between the layers about 1 inch to conceal it. Snip the yarn off at the surface of the pot holder.

9. Iron the finished pot holder with lots of steam to make it flat.


Once you've mastered the single-square pot holder, you can create a playful look by patching together a variety of fabrics. Begin with four 7-inch squares. Cut one of the 7-inch squares into four shapes and use these as your patterns to cut the others. Now mix and match your pieces to get a patchwork look, and form a completed square. Join the pieces with either a ladder stitch variation or edge-to-edge X stitch to make a new set of four pot holder tops. Complete the pot holders by finishing steps 2 though 9 again.

Ingredients:

• 1 kg Chicken Breast (skinless)
• 2 tbsp Almonds (sliced)
• 2 tbsp Corn Oil
• 1/2 cup Yogurt
• 1 cup Onion (grounded)
• 5 cloves Garlic (minced)
• 6 Green Cardamom
• 1 tsp Red Chilli Powder
• 1/2 cup Cashew Nuts (grounded)
• 2 Tomatoes (cut into small pieces)
• 1'' fresh Ginger (minced)


How to make Kashmiri Chicken:

• Heat the oil; add the ground onion and stir until it changes its color.
• Mix garlic & ginger continue to fry till light brown.
• Mix the cardamom and chicken and cook for about 15 - 20 minutes on medium high flame.
• Mix yoghurt, tomatoes, red chilli powder. Keep cooking and stir it constantly for 20 - 30 minutes or till the chicken is fully cooked.
• Add ground cashew and cook for another 3 minutes. Garnish with almond slivers and serve.

Once upon a time, there was a stork who caught the fish in a particular tank. The stork always had a full meal. As the years went by, the stork grew older and weaker. His ability to catch fish diminished. At times he would even starve. He knew he had to do something to survive.

One day he stood by the side of the tank with a very forlorn look on his face. The frogs, fish and crabs wondered why he was not trying to catch any food. A big crab asked him what the matter was. The stork answered that he was sad because all the fish in the tank were going to die and he would have to starve. He said that he had heard that people were going to fill the tank with mud and grow crops over it. The fish were very worried and asked the stork to help them.

The stork offered to take all of them to a bigger tank some distance away. But he said that he needed to rest between trips because of his age. He would only be able to carry a few fish at a time.

The stork took a beakful of fish on his first trip. He flew to a big rock and had a good meal. He rested awhile, and when he was hungry again, he took a second trip. In this manner, he took a trip each time that he was hungry.

The big crab in the tank also wanted to save himself and he requested the stork to take him too. The stork thought it was a good idea to try a new dish. He agreed to take the crab on his next trip.

After the stork flew up with him, the crab looked down to see what his new surrounding would be like. All he could see was dry land. He questioned the stork about this. The stork laughed wickedly and pointed to the rock below where the crab saw a heap of fish bones. The crab realized that he was to be the stork's next meal. So the crab dug his claws into the stork's neck and would not let go till the stork fell to the ground. The crab then cut off the stork's head and returned home to show it to all the other fish and share the story of his adventure.

Hindi:

A Kya Bolti Tu
A Kya Mai Bolu
Sun
Suna
Ati Kya Khandala
Kya karu Ake mai Khandala
Are Ghumenge, nachenge, gayenge Aish karenge or kya ?


English :
Aye what do you say?
Aye what should I say?
Listen.
Speak on.
Coming to khandala?
What should I do, coming to khandala?
We'll roam, we'll loaf, we'll sing, we'll dance we"ll
freak, baby,what else?


Sanskrit : This is too good

Aye balike, twam katham kathisyasi
Aye balakah aham kim kathisyamh
Shrinvasi!
Shrunha
Kim twam khandaalaa agchasyasi
Aham kim kurwasyami khandaalayeh
gamisyami, bhramisyami, nryuthyami, gaayami, maja
karishma, kim karishyami?


Kannada:
Aye yen heltee ye?
aye yen hello lo?? :-)
Kelu.
Helu.
Barteeya khandalakke?
Yen madli bandu na khandalakke?
are suttona, kuniyona, hadona, tinnona, aish madona matten?


Punjabi :
A ! ke boldi tu;
A ke mein bolan;
Sunh
Sunha
Chaldi khandala
Ki karaan ae ke mein khandala
Are Ghoomenge, Turainge, Naachenge, Gaavenge, Mauj
Karenge, Aur Ki ?


Gujarati :
Aye shun bole tu?
Aye hun shun bolu?
Sambhal
Sambhlaav
Aave chey su khandaalaa?
Shun karu aaviine khandaalaa?
Ghumshun, pharshun, naachshun, gaashun, majaa karshun,
beeju shun?


Marathi
Aye kaai tu mhantes?
Aye kaai mi mhanhu?
Aik
Aikav
Yetes kai khandaalaa?
Kai karu yevon mi khandaalaa?
Are ghumuyaa, phiruyaa, gavuyaa, nachuyaa, aish
karuyaa, aankhin kai?


Kashmiri :
Heey, kya chaakh wannan
Heev, kya bhe wanneyyyy
Booz
Wanoo
Pakha telle khandalaa;
Kya karee weeteth bhe khandalaa
Pherevhey, nachevhey, geevevhey, khevevhey, eesh
karav, beyy kya?


Konkani :
Aye ! kitte sangta tu?
Aye ! aao kite sangu?
Saang
Saan! gta
Khandalaa yeta ghi?
Khandalaa yevun kithe kharche?
Bhovya, Phireya, Naachya, Gauya, maja korya, anikithe?


Bengali :
Ei ki bolis tui
Ei ki ar boli
Shon
Shonaa
Jabi ki khondalaa
K! i kori giye khondalaa
Are, ghurbo, phirbo, nachbo, gaibo, maja korbo ar ki?


**************************Want some more?????***************


Malayalam :
Aye yenna pariyunnu?
Aye nyan yenna pariyu?
Keku
Pariyu
Varinno kh! andala?
Yendu cheyam? Nyaan vannu Khandaala?
Karangam, chuttam, paadam, aadam, maja
cheyyam,verendha?


Telugu :
Aye, ainte chaepphuta vu
Aye,ainte chaepala
Vinu
Chaeppu
Wastava Khandala
Yem Chesedhi? vacchi Khandala
Thiruguthamu, eguruthamu, aadthaamu, paadthaamu,maja
chesthamu inkemi?


Sindhi :
Aye cha thi c! haen tu?
Aye Maan chaa chavan?
Budh
Budhai
Acheti cha khandaalaa?
Cha kandis achi maan khandaalaa?
Are Ghumandasi, phirandasi, gayendasi,
Nachandasi,aaish kan! dasi, byo cha?


Magahi : (BIHARI)
A ki bolahin tu
A kya boliyuow hum
Sun
SunaowAaimahi ki khandala
Ki kariaow aake hum khandala
Gumbai, Phirbai, naachai, gaayii, aish karbai aur ki


Assamese:
ey ki kua tumi?
ey ki kom moi?
sun
suna
ahibi ki khandala?
ki korim aahi moi kahandalaa
are ghurim,phirim,nasim,gaam,khub phurti korim aru ki?


Tamil:
Enna solre
Ennatha solla
mudalla kelu,
sari sollu
Kandala variya
kandala poi enna panrathu
Vera enna .oor suthuvom aaduvom paaduvom jalsa
pannuvom



Foreign Languages :


German :
Was sagst du?
Was soll ich sagen?
Hor mal!
Sag mal!
Kommst Nach Khandala?
Was machen wir in Khaldala?
Wir gehen, spazieren, tanzen, singen, haben spaCx,
was noch?


Spanish :
Tu que deceas?
Yo que deseo?
Oye
Di me
Vas a tu khandaalaa?
Que haceo, yo voy en el khandaalaa?
Viajamos, vagabundeamos, bailamos, cantamos,
disfrutamos, si no.


Chinese :
Ain, Chon Zuan Ho?
Ain, Chon Hee Zuano?
Sui,
Suion,
Hyuan Chon Khandala?
Chon Tsuani Hyui Hee Khandala?
Chijuan, Kajuan, Marijuan, Siuan, Samshuan
Tsuaniya Tsu Chon?


Russian :
Aeich, Kov Speache niv?
Aeich, Kov miv Speache?
Nuushev,!
Nuusheva,
Comeva Kov Khandala?
Kov Sheychev Comov miv Khandala! ?
Rotiv, Rotrach, Balleva, Opereacha, Enjova
Sheychevin, Kov
Gobraich?


French :!
Aye! qu'est-ceque tu dis?
Aye! qu'est-ceque tu me vouler dire?
Entendre
Entendrez
Est-ceque tu viens a la Khandala
Qu'est-ceque je fais a aller a la Khandala ?
Promenez,! Allez, Dansez, Chantez a quelle?


Zambesi : (African)
Aye, Zwa To Zulu,
Aye, Zwa Ze Zulu,
Wahte,
Kaso,
Heliyo To Khandaalaa?
Zwa Kumi, Helithe Khandaalaa?!
Himala, Romala, Wahwahla, Infala, Kumaya Kumana, Ni

You may know that bonds are one way to get income from your investments. You may also know they can help you diversify your portfolio since they often move in the opposite direction of stocks. Yet some people might stay away from bonds because they don't understand how these investments work, or the pricing structure has turned them off to the idea. Here we go over retail notes, which often work as a good alternative to more confusing bond funds.

Bonds Can Be Confusing

With accrued interest, markups, commissions and changing prices, bond investing is not always easy. In 2003, the National Association of Security Dealers (NASD) issued the results of a 55-question investor-literacy survey. The results of survey showed that just 71% of the participants understood the concept of a bond and only 39% knew the inverse relationship between bond prices and interest rates. These numbers may explain why some people avoid bonds.

Diversifying Is Not Always Easy

If you don't understand bond pricing, using bonds to diversify may be difficult to achieve. The typical face value of a corporate bond is $1,000, but if you buy one on the secondary market, you may pay more or less than that amount. The price depends on several factors including prevailing interest rates and credit ratings. Grasping these complex factors can present a roadblock in the attempt to use bonds strategically. (If, however, you would like to start learning, check out Bond Basics .)

As such, to gain some diversification using bonds, many investors invest in bond mutual funds. You can start with a small amount and receive diversification; however, the trouble is that you don't know exactly what income you'll receive while you own the fund (because you own units of a basket of bonds rather than the actual bonds, which you would own if you bought the bonds yourself). There are also ongoing fees that you pay to the fund company to manage your investment.

When interest rates are falling, it's easy to ignore these fees because the value of the fund's shares goes up (remember bond prices and interest rates have an inverse relationship). But when interest rates rise, expenses could consume a larger portion of your returns. Plus, a bond fund has no maturity date, so there is no point in time when you are assured of getting back your original investment (as you are when you own a bond directly).

Finally, bond funds also present a potential tax problem. Many owners of taxable bond funds aren't very happy when they get their Form 1099 from their funds. These shareholders often realize that they do not have complete control over when they must take capital gains (short or long term) and how they can get hit with taxes even if they haven't sold any of their shares.

For instance, when interest rates start to rise, the bond fund's share value can drop. This might cause other fund holders to panic and sell. Fund managers then need the cash to meet the redemptions, so they have to sell bonds that may have appreciated, and must pass that growth to each shareholder, even if the money is reinvested in additional fund shares. Thus, shareholders who stayed in the fund end up with a distribution that they didn't even want, but they still have to pay the associated tax on that distribution. And to make bad matters worse, they might have to pay tax while their fund's value is falling.

Retail Notes Offer Another Option

There is another choice for income-seeking investors that is easy to understand and inexpensive to buy. Retail notes are fixed-income securities that you can purchase directly from the issuer at par in $1,000 increments with no accrued interest or added markups. They are fixed-rate subordinated, unsecured obligations of the issuing company. The notes and accompanying interest payments are backed by the full faith and credit of the issuer and are either callable or non-callable. The callable notes usually provide higher yields and include call protection for a set time (for further reading on callable securities, see Call Features: Don't Get Caught Off Guard.). Once you buy the notes, you will receive regular fixed-interest payments (monthly, quarterly or semi-annually) until maturity.

The notes are offered weekly by a limited number of issuers, many of which are top-rated, well-known international corporations. The offers are valid for one week and include a series of coupon rates, maturities, interest-payment frequencies, call dates and credit ratings. Issuers, however, have the right to change or cancel an offering without notice. You can invest in these securities through a broker who can provide you with the weekly postings.

These notes are suitable for fully taxable accounts, or you can put them in your IRA, where the interest income accumulates tax deferred. And investors who want to create an income (bond) ladder can purchase retail notes with different maturity dates and interest-payment schedules.

Even though there might be a secondary market for retail notes, they are meant to be held until maturity. Therefore, they are not suitable if you are looking to trade them for the capital gains (but this is the kind of fixed-income strategy that presents the complexities we discussed above). But like other fixed-income investments, the market value of retail notes can fluctuate until maturity.

Finally, most retail notes have a unique survivor's option. This feature gives your estate the ability to return the notes back to the issuer at par value. Therefore, just in case the note is worth less than par value when you die, your heirs can still return the notes for par value.

The Bottom Line

If you are looking to include or increase the amount of fixed assets in your portfolio, retail notes can make your investing easier. They are simple to understand, can be purchased for a moderate amount, and provide a stable income. Plus, they're often a whole lot simpler than bond funds, which is something that any time-strapped investor is likely to appreciate.

The term duration has a special meaning in the context of bonds. It is a measurement of how long, in years, it takes for the price of a bond to be repaid by its internal cash flows. It is an important measure for investors to consider, as bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations.

For each of the two basic types of bonds the duration is the following:


1. Zero-Coupon Bond – Duration is equal to its time to maturity.

2. Vanilla Bond - Duration will always be less than its time to maturity.


Let's first work through some visual models that demonstrate the properties of duration for a zero-coupon bond and a vanilla bond.

Duration of a Zero-Coupon Bond



The red lever above represents the four-year time period it takes for a zero-coupon bond to mature. The money bag balancing on the far right represents the future value of the bond, the amount that will be paid to the bondholder at maturity. The fulcrum, or the point holding the lever, represents duration, which must be positioned where the red lever is balanced. The fulcrum balances the red lever at the point on the time line at which the amount paid for the bond and the cash flow received from the bond are equal. The entire cash flow of a zero-coupon bond occurs at maturity, so the fulcrum is located directly below this one payment.

Duration of a Vanilla or Straight Bond

Consider a vanilla bond that pays coupons annually and matures in five years. Its cash flows consist of five annual coupon payments and the last payment includes the face value of the bond.



The moneybags represent the cash flows you will receive over the five-year period. To balance the red lever at the point where total cash flows equal the amount paid for the bond, the fulcrum must be farther to the left, at a point before maturity. Unlike the zero-coupon bond, the straight bond pays coupon payments throughout its life and therefore repays the full amount paid for the bond sooner.

Factors Affecting Duration

It is important to note, however, that duration changes as the coupons are paid to the bondholder. As the bondholder receives a coupon payment, the amount of the cash flow is no longer on the time line, which means it is no longer counted as a future cash flow that goes towards repaying the bondholder. Our model of the fulcrum demonstrates this: as the first coupon payment is removed from the red lever and paid to the bondholder, the lever is no longer in balance because the coupon payment is no longer counted as a future cash flow.



The fulcrum must now move to the right in order to balance the lever again:



Duration increases immediately on the day a coupon is paid, but throughout the life of the bond, the duration is continually decreasing as time to the bond's maturity decreases. The movement of time is represented above as the shortening of the red lever. Notice how the first diagram had five payment periods and the above diagram has only four. This shortening of the time line, however, occurs gradually, and as it does, duration continually decreases. So, in summary, duration is decreasing as time moves closer to maturity, but duration also increases momentarily on the day a coupon is paid and removed from the series of future cash flows - all this occurs until duration, eventually converges with the bond's maturity. The same is true for a zero-coupon bond

Duration: Other factors

Besides the movement of time and the payment of coupons, there are other factors that affect a bond's duration: the coupon rate and its yield. Bonds with high coupon rates and, in turn, high yields will tend to have lower durations than bonds that pay low coupon rates or offer low yields. This makes empirical sense, because when a bond pays a higher coupon rate or has a high yield, the holder of the security receives repayment for the security at a faster rate. The diagram below summarizes how duration changes with coupon rate and yield.



Types of Duration

There are four main types of duration calculations, each of which differ in the way they account for factors such as interest rate changes and the bond's embedded options or redemption features. The four types of durations are Macaulay duration, modified duration, effective duration and key-rate duration.

Macaulay Duration

The formula usually used to calculate a bond's basic duration is the Macaulay duration, which was created by Frederick Macaulay in 1938, although it was not commonly used until the 1970s. Macaulay duration is calculated by adding the results of multiplying the present value of each cash flow by the time it is received and dividing by the total price of the security. The formula for Macaulay duration is as follows:




n = number of cash flows
t = time to maturity
C = cash flow
i = required yield
M = maturity (par) value
P = bond price



Remember that bond price equals:



So the following is an expanded version of Macaulay duration:



Example 1: Betty holds a five-year bond with a par value of $1,000 and coupon rate of 5%. For simplicity, let's assume that the coupon is paid annually and that interest rates are 5%. What is the Macaulay duration of the bond?







= 4.55 years


Fortunately, if you are seeking the Macaulay duration of a zero-coupon bond, the duration would be equal to the bond's maturity, so there is no calculation required.

Modified Duration

Modified duration is a modified version of the Macaulay model that accounts for changing interest rates. Because they affect yield, fluctuating interest rates will affect duration, so this modified formula shows how much the duration changes for each percentage change in yield. For bonds without any embedded features, bond price and interest rate move in opposite directions, so there is an inverse relationship between modified duration and an approximate 1% change in yield. Because the modified duration formula shows how a bond's duration changes in relation to interest rate movements, the formula is appropriate for investors wishing to measure the volatility of a particular bond. Modified duration is calculated as the following:



OR




Let's continue to analyze Betty's bond and run through the calculation of her modified duration. Currently her bond is selling at $1,000, or par, which translates
to a yield to maturity of 5%. Remember that we calculated a Macaulay duration of 4.55.




= 4.33 years

Our example shows that if the bond's yield changed from 5% to 6%, the duration of the bond will decline to 4.33 years. Because it calculates how duration will change when interest increases by 100 basis points, the modified duration will always be lower than the Macaulay duration.

Effective Duration

The modified duration formula discussed above assumes that the expected cash flows will remain constant, even if prevailing interest rates change; this is also the case for option-free fixed-income securities. On the other hand, cash flows from securities with embedded options or redemption features will change when interest rates change. For calculating the duration of these types of bonds, effective duration is the most appropriate.

Effective duration requires the use of binomial trees to calculate the option-adjusted spread (OAS). There are entire courses built around just those two topics, so the calculations involved for effective duration are beyond the scope of this tutorial. There are, however, many programs available to investors wishing to calculate effective duration.

Key-Rate Duration

The final duration calculation to learn is key-rate duration, which calculates the spot durations of each of the 11 “key” maturities along a spot rate curve. These 11 key maturities are at the three-month and one, two, three, five, seven, 10, 15, 20, 25, and 30-year portions of the curve.

In essence, key-rate duration, while holding the yield for all other maturities constant, allows the duration of a portfolio to be calculated for a one-basis-point change in interest rates. The key-rate method is most often used for portfolios such as the bond ladder, which consists of fixed-income securities with differing maturities. Here is the formula for key-rate duration:




The sum of the key-rate durations along the curve is equal to the effective duration.

Duration and Bond Price Volatility

More than once throughout this tutorial, we have established that when interest rates rise, bond prices fall, and vice versa. But how does one determine the degree of a price change when interest rates change? Generally, bonds with a high duration will have a higher price fluctuation than bonds with a low duration. But it is important to know that there are also three other factors that determine how sensitive a bond's price is to changes in interest rates. These factors are term to maturity, coupon rate and yield to maturity. Knowing what affects a bond's volatility is important to investors who use duration-based immunization strategies, which we discuss below, in their portfolios.

Factors 1 and 2: Coupon rate and Term to Maturity

If term to maturity and a bond's initial price remain constant, the higher the coupon, the lower the volatility, and the lower the coupon, the higher the volatility. If the coupon rate and the bond's initial price are constant, the bond with a longer term to maturity will display higher price volatility and a bond with a shorter term to maturity will display lower price volatility.

Therefore, if you would like to invest in a bond with minimal interest rate risk, a bond with high coupon payments and a short term to maturity would be optimal. An investor who predicts that interest rates will decline would best potentially capitalize on a bond with low coupon payments and a long term to maturity, since these factors would magnify a bond's price increase.

Factor 3: Yield to Maturity (YTM)

The sensitivity of a bond's price to changes in interest rates also depends on its yield to maturity. A bond with a high yield to maturity will display lower price volatility than a bond with a lower yield to maturity, but a similar coupon rate and term to maturity. Yield to maturity is affected by the bond's credit rating, so bonds with poor credit ratings will have higher yields than bonds with excellent credit ratings. Therefore, bonds with poor credit ratings typically display lower price volatility than bonds with excellent credit ratings.

All three factors affect the degree to which bond price will change in the face of a change in prevailing interest rates. These factors work together and against each other. Consider the chart below:




So, if a bond has both a short term to maturity and a low coupon rate, its characteristics have opposite effects on its volatility: the low coupon raises volatility and the short term to maturity lowers volatility. The bond's volatility would then be an average of these two opposite effects.

Immunization

As we mentioned in the above section, the interrelated factors of duration, coupon rate, term to maturity and price volatility are important for those investors employing duration-based immunization strategies. These strategies aim to match the durations of assets and liabilities within a portfolio for the purpose of minimizing the impact of interest rates on the net worth. To create these strategies, portfolio managers use Macaulay duration.

For example, say a bond has a two-year term with four coupons of $50 and a par value of $1,000. If the investor did not reinvest his or her proceeds at some interest rate, he or she would have received a total of $1200 at the end of two years. However, if the investor were to reinvest each of the bond cash flows until maturity, he or she would have more than $1200 in two years. Therefore, the extra interest accumulated on the reinvested coupons would allow the bondholder to satisfy a future $1200 obligation in less time than the maturity of the bond.

Understanding what duration is, how it is used and what factors affect it will help you to determine a bond's price volatility. Volatility is an important factor in determining your strategy for capitalizing on interest rate movements. Furthermore, duration will also help you to determine how you can protect your portfolio from interest rate risk.