Friday, June 19, 2009

Beware of misleading headlines

I just saw a headline Real Estate up 170% in 3 months

Say a stock falls from Rs 100 to Rs 10...ie 90%
Then it rises from Rs 10 to Rs 27...ie by 170%

It is still down 63% from its peak
Most people don't realise this...they just read the headline that real estate is up 170% and think the next bull market is underway

So please treat such attention grabbing headlines with caution

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