Friday, 14 May 2010

Banking on Life

I got my life with a forward contract for a premium price thinking that the spot price will be high in future.
I hedged it with another person who agreed to join hands in this contract.
After more than a quarter century I realized that, it wasn't a forward but future contract. The regulator here, had fixed the price tag while entering the contract. (Ignorance of law is no excuse !!)
Hedging doesn't mean anything in the time of crash.
We together agreed that life takes it own time to get corrected. We are forgetful about the crash and keep investing with different notions. Till the time we live, we are bound to go through the recessions, go through the booms.

**Thanks to Credit Suisse "Banking on Voluteers" tag line.