India’s Goods and Services Tax (GST) will be a game changer!

India was founded on the ideology of local self government or panchayati raj as espoused by MK Gandhi. It has a federal political structure similar to the United States and Canada. As per India’s constitution, the federal government has powers over defense, foreign affairs, railways, direct taxation, certain indirect taxation etc. mentioned in the Union List (97 items). The state governments have powers over land, law and order, certain other indirect taxation etc. mentioned in the States List (66 items). There are several other items that are on a Concurrent List (47 items) shared by both the state and the federal governments. More...

Everyone is an Efficient Market Theorist!

At some level, we are all believers in the Efficient Market Theory (EMT). When the mispricing of a stock persists for an extended period of time, most of us begin to believe that the markets are right and that the pricing of the stock is justified. This is true as much with overpriced stocks as it is true with underpriced stocks.

The longer the mispricing lasts, the easier it becomes to justify the price of the stock based on the EMT. Commentators explain valuations that don’t make any sense with the concept of a market rating and explain sudden (and sometimes explosive) changes in the price of a stock with extended concepts of de-rating and re-rating. More...