I am not a Market expert…I am writing this with minimum knowledge as what layman thinks of current market situations and what impacts our daily lives…???
The simple Bull and Bear phase means – Bull-pushes market ahead and Bear-Drags…pulls back and we all know currently Bear phase as our market is sinking. Let’s see who is going to be dominant and till when…
Whenever people have started losing their hopes on market…gold & silver prices have shooted up as they start investing more into such metals.
To give you some stats Today 27th Aug, The Nifty(NSE slipped to an 18-month low 4728 before closing at 4747 down 91 points. Meanwhile, the Sensex dived 297 points to close below the 16000 support at 15848.
As the market falls below, the companies got less money to run their business. Less Money means there might be salary cut or workforce reduction to run the business. Workforce reductions means in simple terms another Recession!! Everyone know what recession is, we have experienced this recently and expecting yet another one. Hoping we don’t see such bad phase again. Cant again see our loved ones ending their life or going to struggle phase again.
We might think this is because of S&P downgrading America’s credit rating from AAA to AA+. This in simple terms means their spending is more than their earnings…In Hindi language we say…”aamdani aathanni…and kharcha rupaiyya…” which means earning is 50 paise and expenses are 1 rupee. Everyone was aware that they were in Big debt and with S&P’s certification it because evident. Americans were always a super power and they will get it back soon. But the big problem which we have not seen is bail out of European Union…they too are in Big debt.
We are seeing the FIIs who matter the most for Indian market are pulling out their money during hard times. European Union problem is continuing but a lot will depend on how RBI reacts to these situations. Next RBI meet is on 15th Sep.
In my personal opinion this is just a temporary phase and things will go normal in few days…so stay invested…don’t pull out your money….let it be under suspense account… No one has been able to challenge the market. If experts knew it all why didn’t they advice us yesterday. Going back to the history the Market has behaved similar many times over last 100 years and no one has been able to challenge this and told what should be right or wrong. Let’s all hope things would go Normal sooner.
Please give us your feedback and thoughts as what you think about the current market situation….any kind of thoughts are accepted….
