Let’s use XIRR to combat our mental blocks and optimism bias
I have been discussing with multiple people about their investment performance and realize a lot of us have tendency to block out data (esp of ones with unfavorable outcomes) or have an optimism bias of the returns we have generated in the market.
Only the cautious will enjoy “Achhe din”
Markets have had a run up of about 20% this year and there is a sense of bonhomie. Animal spirits have returned to the market. I don’t mean to be a spoil sport, but this is the time to exercise caution. Here is why: Current P/E for NIFTY is close to 21 and this year […]