Somehow I felt todays stock market fall was every important. Inevitable, yes but important, even a BIGGER YES. One could have easily seen that for the past few months the momentum behind most of the stocks was meaningless.These markets just work like a strip club. Someone has to strip in front of the audience to attract customers. The better you strip the more is the degree of bringing the people closer to you. Those who got the money can have all the fun and rest without enough money can watch them play and enjoy a glass of drink. The people with money are the FII's and one watching from the back are the retail investors like us. The markets today are absolutely bare for FII's to enter again. Today we offering them valutaions of around 16 times the Forward Earnings And with the growth story of india intact , there is hardly a reason why we shouln't be back in a bull run once again.
It was foolish to hear people demanding resignation of P.Chidambram for todays mishap at the stock market. How can one blame him for this carnage.
Also some good news is just pouring in from US right now. They have dropped the discount and funds rate by 75 basis points and the FED doesnt see a recession likely in next two years. In simpler terms , putting all the jargon aside , we should see everything back on track within next few days.
p.s. - Thanks a lot garima for correcting me. I mistakenly put the crash from 16000 to 12000 in the last post at may 2007 instead of 2006.
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2 comments:
Ass hole, Correct my blog's link. it spells " arjungeol" where it shud be "arjungoel.blogspot.com"
if you remember the p-note controversy, the number of FIIs now entering the indian market have now been put under huge constraints in order to stop further influx of US dollar into india thus resulting in further depreciation of the rupee.
i guess RBI has also lowered the interest rates due to the same reason. but yes, the so called talk of 'recession' in the US economy is all man made, by investment banks to shore up asset prices and earn a profit. the manufacturing economy, which is the real economy is going to only get bigger.
and anyways the recession and boom is just part of the economic cycle. i guess in this case tho the US sub prime crisis has wrecked everything!
nice blog btw!
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