Festival of Stocks on InsideArbitrage Next Week

The Festival of Stocks #15 will be hosted on InsideArbitrage next week. We have already started receiving submissions and if you are a blog author who writes about stocks, please send in your submission.

After expressing concerns last week about the Indian stock market hitting record highs, the Bombay Stock Exchange (BSE) lost almost 800 points or 5.66% in the next four trading sessions after the Reserve Bank of India (RBI) decided to raise the cash reserve ratio to curtail inflation and reign in excess liquidity. The RBI asked banks to increase the cash reserve ratio by 50 basis points to 5.5%, leading to a drop of 7.43% in the ADRs of India’s leading bank ICICI Bank (IBN) and a drop of 5.85% in HDFC Bank (HDB) over three trading sessions.

Both these banks and the BSE have recovered most of these losses and the market seems to have shrugged off this event just like it shrugged off the Mumbai train attacks in July. I have been following both these banks for quite some time now but decided to stay away as the model portfolio already has enough exposure to India through Tata Motors (TTM) and Sify (SIFY) and as a general rule of thumb it is not a good idea to invest in banks in a rising interest rate environment.


  1. George
    November 4, 2006 at 12:00 am

    I think the real problem with Adsense is that it doesn’t work well on sites that have a sophisticated audience. Investors are a skeptical lot. They don’t click on ads most of the time.

    Brand advertising and seo services are much better alternatives to pay per click ads for investment blogs, at least that is what I’ve found.

  2. Asif
    November 4, 2006 at 12:00 am

    Most people I have spoken to have rarely clicked on an ad from a blog or even from the paid listings on the top of search engine results. I think the money most bloggers make from ads is more likely through impressions (CPM) rather than clicks. The bigger problem with Adsense is that revenue sharing is skewed heavily towards Google.

    Two ad networks I have considered as alternatives to Adsense are RightMedia and LinkShare. However you need to have a lot of traffic to utilize these networks and I also do not want to subject my investment newsletter and blog readers to ads.

    What did you mean by SEO services?

  3. John
    November 5, 2006 at 12:00 am

    SEO = Search Engine Optimization?

    I think Adsense makes more money the more traffic a site gets. Someone like StevePalina.com (not an investing site) probably makes good money, though I don’t know.

    I wonder if the real model is that of Charles Kirk, who has a members-only section of his bog. People donate $50 or more and get real time access to his trading. Some sort of subscription model may ultimately prove the way to go. But blogging is still relatively new, other better ways may emerge.

  4. George
    November 5, 2006 at 12:00 am

    By SEO services, I meant search engine optimization. Simple, integrated text link ads can help boost search engine ratings. Advertisers are willing to pay for these ads on a per month basis.

  5. Asif
    November 6, 2006 at 12:00 am

    I did realize that SEO stood for Search Engine Optimization. With almost 80% of people clicking on organic search results instead of paid listings that are displayed on the top, SEO is certainly important for web based businesses. However it does take a ton of time and patience to get to the top of search engine results for highly competitive keywords. After months of SEO, InsideArbitrage finally made it to page 1 of Google for the search terms "stock investment newsletter" and "investment blog" as well as the top result on Yahoo Search for the keywords "investment blog".

    I just could not figure out how SEO could be used in lieu of advertising to generate revenue for a website as suggested by George.  

    John, I agree with you that the real business model might be a subscription based service or even money management. However I am surprised to see you mention a subscription based model since you have indicated in the past that you see "stock picking blogs like Controlled Greed.com as taking on investment newsletters".

    I have not yet seriously looked into a revenue model for InsideArbitrage because I mostly write about the research I am doing for my personal portfolios and the returns to date have indeed been very rewarding.

  6. John
    November 6, 2006 at 12:00 am

    Asif: I don’t know why that would be surprising, unless most people just associate “blog” with “free.” I want the blog to be profitable, and I want to maximize profits, like I would with any other business. Right now I don’t see that as generating ad sales, or getting fees from Amazon sales. But I could be wrong.

    By taking on investment newsletters, I mean that Controlled Greed.com makes stock picks, and the closest thing to blogs like mine are the stock letters. Only I’m not taking on the expense of renting mailing lists, marketing, paper and printing costs, postage, direct mail fulfillment, etc.

  7. Asif
    November 6, 2006 at 12:00 am

    John, I must have misconstrued what you meant by “taking on investment newsletters”. Most people do associate “blog” with “free” but I do not see why a blog cannot be profitable. From what I have heard some popular bloggers bring in as much as $60,000 a month. But for most bloggers, meaningful returns based on the amount of time they put into their blogs, remains elusive.

    Maybe the key is a correct mix of ad based revenue, referral fees as well as a subscription model. The Motley Fool derives its revenue from all these streams without exactly alienating its visitors.

  8. rudi
    June 8, 2007 at 12:00 am

    Its a tough game out there. I just started. I get clicks sometimes but they seem not to show up on adsense??


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