World Matrix - Markets have demonstrated as if they have an umbilical cord

Friends,

The world markets have demonstrated as if they have an umbilical cord attaching them with USA. As if the nutrition used to come through this and now the infection is coming through it.

The markets round the world since morning have tumbled because DOW was lighter by 500 points yesterday. All the Asian markets are down between 2 pc to 4 pc at the moment. India did not dip yesterday but would it hold under such psychological assault from all over.

Now when the rationality has been given good bye, there are two ways to weather the storm. First, you may stay put and not do a thing. Second, you may convert your cash resources in to buying in to companies of your preference, of which you have full idea and know more than a common investor. This will be transfer of a valuable asset to someone who has value perception from someone who is skeptical because he does not know. Such transaction will abound and the fool this time will not soon part with money but with valuable asset.

Sticking to your areas of knowledge is the key today and rewards would be plentiful. So, don’t look at market rather look at specific companies. Its a time when you could buy three rupee worth of stock for just one.

Large pools of money are being released in to the ocean of world money. After it is noticed that the level has risen , there will fear that it will swamp the shores with furious waves and some will be caught unawares. I think , I told you that its not gold standard that is in place today , it is simply a system where the central banks do the balancing act between inflation , interest rates and look after needs of govts which have to borrow to meet budget deficites. This way any time the money supply may be increased or decreased. With more money as with more water people would splash and not store. However, this painful process is creating havoc with people , staying deliver aged is the need of the hour.

Look at Tata’s, they are in process of putting up new car plant, have they not seen if there is any sort of danger on the industrial road ahead. No, they could have seen, they have not been able see because there is none. Financial sector today revolves around the stock exchange hub, here also our Premji of Wipro has found it fit to pick up 5 pc stake in NSE for no small a sum, it is 100 million dollars.

Speaking at a business leadership award function PC told that India would clock 9 pc growth next year against 8 pc this year. Being FM, he should know. He also told there is nothing to fear but the fear itself. He confirmed that India has agile regulators and they would stand by public. Not stopping here, he further said that indirect tax revenues are growing by 14 pc.

Have you noticed that the gloom is there just before the results are going to come. This is the darkest hour before the sunrise, would any body question the sun rise! One can however say when it will rise the sky would be overcast, again does sky remain overcast all time to come.

HariOm,
Krsna Khandelwal

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