Letter # 93 | Buoyant Capital | The opinion of majority is irrelevant in the markets

Global equity markets collapsed on 21 January 2008 and we had another “Black Monday”. While the financial journals believed that the markets were reacting to a possible US recession, a strange story was brewing. One relating to a compliance dude turned trading geek at a Parisian bank. In today’s ET article, we discuss the broader takeaways from that incident – and how markets are not really a sum of what all its participants think. Science has wonderfully progressed treading that path, and if we take cognisance, we as investors can immensely benefit from this phenomenon (we discuss through the ICICI Bank’s case study). Read here:

Opinion of majority is irrelevant in markets. Here’s what really matters…

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.