Tuesday, December 15, 2009

An Extraordinary Mind

The Daily Pioneer pays tribute to Paul Samuelson, architect of modern economics. Please read at http://www.dailypioneer.com/222728/An-extraordinary-mind.html .

The Pioneer tribute says "Paul Samuelson changed economics forever".

In my college days, Samuelson was considered to be 'the' book on Economics. It still is. Mr Samuelson died at age 94, in the USA on Sunday, December 13, 2009. He was awarded the Noble prize for Economics in 1970. He was the mentor of many Noble prize winners, including Krugman who won the prize in 2008.

I took the liberty of pointing out the genius of Samuelson, today on the CNBC show at 9:30 AM. I suggested that 500 years later, people will still remember Mr Samuelson while they will have forgotten the Investment Bankers who price IPO's.

Readers must always remember that there is life beyond stop losses and targets, beyond fund managers and  business magnets.

In fact, successful traders understand this intuitively.

2 comments:

men said...

Mr. Sudarshan, I don't know if this is the right place to ask you for your comment, but ....
If one were to adopt a contrarian approach especially in the cash segment, one should buy a beaten down sector/stocks, last year it was Infosys/IT sector for eg. which has given >100% returns since the last 18 months. For a person doing only the cash segment, this stock would have been ideal, and @ 1250 no TA would have recommended this stock as it lacked momemtum. Going by the same logic Bharathi and MAY BE some good banks stocks may also be bearish for the moment.
In one of your earlier threads you suggested to buy Infosys around 1600-1700 (I could be wrong here on the levels), giving a return of 50%, compared to around 80-110% from the lows, so for a person doing only the cash segment when should one consider buying bharathi, j&k bank (or any other bank stocks) now that these stocks are not the flavour of the season?
I have requested this as somewhere you have mentioned Warren Buffet may not have known TA. Trust that you will reply as I feel for the cash segment a contrarian approach is safer though may not necessarily be the best.
Thanks,

Swingtradingideas said...

Dear Sir,
It was indeed good of you that you remembered the legendary Paul Anthony Samuelson. His book Economics: An Introductory Analysis is indeed a bible to understand Keynesian economics.
Yes , I completely agree that that there is life beyond stop losses &.......