Finance Secretary Paulson and FED Chief have been on air declaring that they have commitment to deliver the financial system of America out of woods. The President’s team has no confusion and it is showing too. The DOW futures index is up by good 300 pts. DOW would be in the vicinity of 10000, an unthinkable figure only a few days back. Back home, the leading indices went up and came to last days level. The bears seem to still be nursing their bias and why not because there were no big company results announced today. Here, the effort is also are some what mis-directed. We should be readying ourselves for the possible bad winds blowing, well in time.
It is, however comfort enough that the opinion today is not entirely negative. Also, the rest of the world including Asia is demonstrating through markets that the fear is on the wane as they have all been up for the second day today. Crude is trading at 82 dollars (up 2 dollars). The injection of liquidity so far and further doses in pipe line are bound to have salutary effect, once the multiplier effect has done the trick. Dollar demand from the funds liquidating stocks must have gone down as the rupee is further up by a slight margin and a dollar trades for 48.18 rupees just now.
I would like my readers to contribute freely their own frank opinion through the comments box.
HariOm,
Krsna Khandelwal
BIRDINFO Stock Rx - A prescription for stock market
1 comments:
You seems to be suffering from lack of real-life experience and crisis of confidence facing the world at large and India too.
The present liquidity crisis faced by the ral estate sector and the manufacturing industry is just the tip of the iceberg.
All fundamentals are useless when nobody will buy shares even if they are available at throwaway prices simply because people are scared. Herd mentality? Yes, but gone are the days of boastful 10% GDP growthl, Sensex at 30,000 projections and India emerging as next China.
You ain't seen nuthin' yet!
Your Panchtantra is silent as it didn't predict anything like what is happening now.
All fundamentalists and chartists have been proved wrong!
Time to admit that nothing works when it is raining panic!
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