For quite some time have been trying to understand and figure out whether the retail investor can ever make money from the market. There are some queries which if unanswered, clearly imply the retail investor being disadvantaged in the share market, clearly indicating lack of market efficiency... 1. Insider information. This can never be done away with. The top level executives of businesses 'know the score' and will make some market moves in advance based on this information. This 'score' can be the organisation's results or regulatory changes of the government. Not in the USA, Not in India. And contrary to what many believe, post the Rajat Gupta episode, this problem exists at the same scale in all places where a share market functions. The fundamental human is the same everywhere with the same shortcomings. 2. Skill lacunae - executives generally have some management education, and brokers have 'connections', which may not be the case for t
Thoughts from Experiences ! Your views and opinions are welcome, they make me think.