Walking in the dark

It's really fun to shout up naked “EUREKA!! EUREKA!!” and come up with new ideas. Since the invention of wheel, technology has advanced beyond the seven seas. Yet the most exciting phrase one inventor hears over his inventions at first sight is “That's Funny!”
we see most of the inventions taking place in developed countries. What is there in those ppl which is not there in us? The game is all about how you approach and pay attention to your funny ideas.

Graduate level students of MIT Media LAB US Leonardo Bonanni, Chia-Hsun Lee had made a “Smart Sink: Context-Aware Work Surface” which is an intelligent sink that will automatically adjust height of wash basin as per users height for his comfort. It has many others features like automatic water flow and temperature adjustment of water. This wash basin is hence equipped with CCD camera, stepper motor, a PC, a PIC micro-controller, solid state sensors. … A great invention for making comfortable multi-user washbasin!

The point in above is not to make fun of it, but to realize where we lack in our view of seeing and doing things. Had it been the same in India, none would have ever thought to implement it. The main point in invention is “Why did you develop this idea? What were the science and technology trends? How does this work?” You define a problem, and you try to think of its solution which in turn becomes an invention!

Invention is all about “Walking in the dark”; you are stuck infinite times and fail infinite times. Many times you feel there's nothing left to invent… And this is something you will never find in stories of inventions. The well-known stories are about the glorious parts, when someone has a breakthrough. But those stories miss the reality that invention comes in phases. Inventors have periods of great inspiration, but they also have periods when they're dry and confused. And it might sound strange, but believe me that repeat inventors have different methods for dealing with their dry periods than new inventors; there are hidden hazards for new inventors.

In developing countries, the main reason behind lack of invention is “The Innovator's Dilemma”. It arises at different parts of the curve and for other kinds of organizations the inventor works for. Innovation takes place in an ecology in which big technology companies are one kind of important player. And this is why you see the difference in thinking and inventions happening in US, and here in India.

Nonetheless, every person is creative and has the power to invent. The key to invention is very simple but also fundamental. Just ask yourself two questions "What is possible?" and "What is needed?” Once a person identifies a valuable problem, this is the "what is needed" question. When it explores what could be done with emerging technologies, this is the "what is possible" question. The magic is in the dance.

How to approach inventions depends on individuals. Survey and study shows there were four main methods that inventors used, sometimes in combination. One is, some people focus heavily on "what is needed?" and tend to frame everything that they see during the day as part of their search for solving their current problem. By holding the problem in the back of their mind, they see the world differently as part of their search for a solution. We call that method "need-driven.” Next is “Remix” and people just take up every technology and try to mix up each other, apply permutation and combination to each other and come up with better solution!. There are two more methods in which great inventors approach…. Invent or discover yourself!!!

A Scintillating Experience!!! :)

Hmmm hearty wishes started pouring in the previous night and in a similar way the question 'hey how was the cat?'. "CAT??!!" hey! it's not the teeny weeny Lil pet I'm speaking about!!! well, I'm speaking or rather writing here about" common Admission Test-08 an experience".

It's been a great journey, a year's plan and preparation to win the battle. The few words which inspired me to take this exam -"It may be difficult, but it is possible". Enjoyed every moment right from the beginning- the coaching class, the happiness when answers were correct, the bunch of nerves when things didn't work the right way, the worries, the tension built up as the countdown began for D day- everything has been unique in it's own way. The next stage -the national level tests hmmm!! my god!!! I still remember how i made a huge mess in my first test due to the tension, then slowly transformed into a test taker with a series of 16 unpredictable tests ,each one with a different pattern. Trust me, the 16th one was the most peaceful one and with just one week's time on hand -had Lotta last minute things to cram, but that never works with this exam :D. So, the last week before the exam was spent reading novels, solving different papers and most importantly speaking to friends and visualizing myself in the exam :)

THE day- reached on time with my dad's words ringing in my ears" Think only the best, work only for the best and expect only the best. Forget the mistakes of the past and press on to the greater achievements of the future. Give everyone a smile". The paper was a surprise with 90 questions and asymmetric division of sections first time in 10 years, all that apart it was overall a good one :)

And now, kinda happy with it.

So here I am wishing all my friends for upcoming exams , stay cool and give your best. Thanks for reading thro' this!!! lemme end it with a high note-

Life's struggle don't always go To the stronger and faster man,

But sooner or later the man who wins Is the man who thinks he can.

Good luck

Regards

:)

Dollar v/s Rupee and commodities

The currency of any economy is based on dynamics of supply and demand, and its value depends on trading in currency exchanges all over the world.
Higher the demand for a currency on an exchange, the stronger it becomes and vice versa. .

NEWS: "The rupee fell sharply against the dollar at an all-time low of 50"
"Rupee ends weaker than 50 per dollar for first time"

So is the rupee falling with the dollar?
Forget about the rupee. Everything that is happening is to do with dollar.

Here is the comparison of INR and Euros against Dollars the past 6 months.

Don’t worry about the numbers in the ETF just look at the percentage drop. Both euro and INR moved steadily against the dollar.

Why?
People often forget that rupee’s appreciation in the first place has not much to do with the rupee in itself because dollar was moving down against every currency. Now, there is a flight to quality where people don’t want to have money in any unsafe currency and dollar is moving up against every currency.
So, draw rupee against Euros or pounds, you won’t notice either the climb or the drop the past couple of years.

So, how long dollar will be this way?
Nobody knows, but IMO at least for till this credit crisis comes to a reasonable end, dollar will be strong.

Dollar and commodities:
Historically, there has been a negative correlation between the dollar and commodity prices. The classic dollar-hedge is gold and crude.

The price of crude oil has two components
1) supply versus demand
2) value of the dollar.

Crude oil is mainly traded in US dollars.
When the US dollar weakens, the crude oil market participants like speculators, producers, refineries, and such others push the price of crude higher.
This would ensure that oil producers are not at a loss when they convert US dollars into their currency.

The price of gold is linked to the price of oil and to the movements of the dollar.
The gold price has been supported by the growing prosperity of the major Asian countries, particularly India and China. The Indians have a tradition of using gold jewellery as a store of family wealth, and the jewellery trade has been absorbing large quantities of current output.
Generally a stronger dollar reduces gold's appeal as an alternative investment, and makes the precious metal, and other dollar-priced commodities such as crude weaker.

Bottom line principal of "Demand / Supply " still applies to most of the recent phenomenon in Global market.

Sensex below 9000! What next... ?

Sensex fell below the psychological 9,000 mark. World stocks fell on prospects of a deep global recession. Japan, Germany, Hongkong, France all have declared recession! US and UK are also in undeclared recession. What can we expect in the current situation.. ??

Chidambaram, our Finance Minister, has hinted that the country could miss its annual export target of $200 billion for this fiscal year because of the slowdown in developed nations. Our economy after growing at an annual rate of 9+% in the past three years has slumpedto 7.9% in the April-June 2008 quarter. The Reserve Bank of India has downgraded its growth forecast to 7.5% - 8% for the current financial year. A sharp set back like this could bring another round of selling which could bring our sensex down as the sensex has to adjust for the future earnings.
With banks tightening the credits to Real estate companies, there could be some more downsides in the real estate companies. We think there may be a strong selling happening in DLF, Punj Lloyd, Unitech etc.

With China's slowdown we could also face some problems with commodity-related companies. Metal stocks can face a strong sell of Hindalco,Ispat industries, Tisco, Sail could face further problems.

WIth the strengthening of the US dollar against INR, we could face problems in Financial sectors. Stocks like Rel. Capital, KotakMahindra in particular may have selling pressure.
Generally Sensex Heavyweights stocks like RIL, SBI could also be in trouble as FIIs are queueing up to take away 10 billion US$ from India bourses.

We feel index is currentlty on a downtrend and it is too early to buy the shares and the year 2009 will be the best year for bottom fishing.

We do hope that we would get wonderful opportunity to buy some great stocks at great price..!!

Investment and TAXATION..!!!

Investment and TAXATION are few words which are puzzling a few new hires. So let's get a basic idea of what is it all about and how the system works...

From the Budget 2008-09 tax exemption for working man is 1.5 Lakhs and for working women it is 1.8 Lakhs it . So your income is not taxed for this amount irrespective of one makes a investment or not.

While exemptions is on income deduction in the calculation of taxable income is allowed for certain payments under Section 80C (investments which are exempted from tax), Section 80D (Medical Insurance Premiums) and Interest on Housing Loans.

In this post let us discuss on few options in Section 80C since most of us would be interested in investments.The total limit under this section is Rupees One lakh. The investments or expenditure can be

• Contribution to Provident Fund or Public Provident Fund
• Payment of life insurance premium
• Investment in pension Plans
• Investment in Equity Linked Savings schemes (ELSS) of mutual funds
• Investment in specified government infrastructure bonds
• Investment in National Savings Certificates

Lets discuss about them but not insurance, let us not club insurance with investment.
"Insurance and investments must be mutually exclusive", will write about this in my later posts.

Contributions to PPF ( Public Provident Fund) and ELSS ( Equity Linked Savings Scheme of Mutual funds) are eligible for tax deductions.
PPF gives a return of 8% p.a. The most attractive part being the interest is tax free*. 15 years is the minimum term that you need to hold this account for. It definitely helps in compounding your money in such a period of time.

ELSS also generates tax free dividend (if you opt for dividend payout ) and the capital gains you make out of this scheme is also tax free*.
These two schemes definitely stand out of the rest in terms of tax saving schemes. Fixed Deposits, NSC ( National Savings Certificate ) since they do not enjoy tax free* returns.
ULIPs also enjoy some tax benefits.

So, When we compare PPF and ELSS , Equity is capable of generating greater returns in the long run( esp ..like PPF period of 15 years). So, if one is ready to lock in his money for 15 years or so, he can prefer equity based investments . ( ELSS have yielded 40% return in last 5 years # Same performance however cannot be expected year on year, but around 12% returns can make a huge difference!!! in a 15 year period).

Why you must have a PPF account?

1. Highest Return- 8% among the safest category of investment.
2. Only instrument that falls under EEE (Exempt - Investment amount, Exempt- Interest accrual ,Exempt- Interest pay out) category under Income Tax Act.. You need not pay a single penny of tax.
3. Power of compounding can act effectively as the investment period is for 15 years.
4. Tax exemption under section 80 C.
5. The Lock-in period keeps reducing as years go by

So Open PPF account even if you are wary of the 15 year lock in ….Keep investing the minimum amount every year and you can use it during the final years with a minimum lock in period!!

Happy Investing :-)

Investment Basics

OK, as Ajay asked let get few basic questions cleared...

whats the difference between stocks n shares?
Actually both stocks and shares are the same...
stock is used to describe the ownership certificates of any company, share indicates the number of parts of ownership..so when you buy a share of stock, you are actually taking ownership in the company in which you are investing.

whats the difference between derivatives- futures n options?
Derivatives are one whose value changes in response to the changes in underlying variables...
Futures and options are two commodity traded types of derivatives...
In case of options contract gives the owner the right to buy or sell an asset at a set price on or before a given date. But in futures contract is obligated to buy or sell the asset.

whats is liquidity in market?
Market liquidity means that there are people willing buyers and sellers at all times in the market without causing a significant movement in the price.

whats is cash reserve ratio(CRR)- how does it affect wpi?
cash reserve ratio (CRR) is the amount of funds that the banks have to keep with RBI,To make sure banks do not run out of money to pay for withdrawals, they're supposed to hold a certain percentage of deposits as free cash.A CRR hike means banks will have to hold more cash... and CRR one of the measures RBI uses to to curb inflation But for an investor hike in CRR implies a decline in liquidity.
The wholesale price index (WPI) is an indicator designed to measure the changes in the price levels of commodities and change in CRR effects WPI to control inflation.

Bare Beginning

Before i really begin this blog, let me first tell you the reason to start this blog.

Many wanted me to start discussions and share information related to a few topics which drives me crazy like Entrepreneurship, Finance, Hobby Robotics, ethical hacking, project work, Share Trading, WSN, etc...
I am also interested in networking with like minded people and field experts, so if you could write about any of the topics please feel free. lets make it a learning for everyone.

Well, to put it in a nutshell,"I am looking for people who are looking ", so if you are looking, i am waiting to hear from you... :)