NeilX

Three Investor Lessons from the Satyam Scandal

Dear HJ,

You are being naive - accounting scandals happened at Enron, Worldcom and other US companies also. So I don't think there is anything unusual.

However, India does have huge problem of corporate governance. Check this: www.thehindubusinessli...

Three Investor Lessons from the Satyam Scandal

India is one of the most corrupt country in the world and the businessmen in India are as corrupt as their politicians barring few. On top of that many large corporate houses are family owned enterprises where nepotism is rampant.

Check this article: www.thehindubusinessli.... Quote "The idea of separation of ownership and management that is an essential feature of the corporate form of organisation has never seriously appealed to Indian businessmen. The Indian listed company has been, for the most part, a glorified family enterprise that tolerated outside investors at best and looted them in the worst case. Companies such as Infosys are rare exceptions to this rule.".

One another thing that I don't like about Indian companies is congolomerate model - many large companies want to be in all businesses.

International ETFs Are Extremely Overbought

Hi,

Could you care to comment about the selection of 50 day moving average and 1 standard deviation? Is this same as Bollinger Band? I thought Bollinger Band standard was 20 day moving average and 2 standard deviation. Is there any reason why the bollinger band setting is different for ETF? Thanks!