STABLE BUT EDGY

It has been yet another week of sideways and edgy movement for the world stock markets with India performing much better than many others. Sensex touched 15700 (within the striking distance of all time high of 15868) but then reversed to close at 15590 - a respectable 1.8% weekly gain. It is little surprising that market is shrugging off a major negative news in the world's biggest market(U.S) but I am sure the fundamendals will ultimately catch up soon.
Now the market is pinning its hopes of a interest rate cut by the FED ON sEPT 18TH to boost the indices but is comfortably ignoring the compulsions leading to such a cut. And the more the rate cut - the greater is going to be the fall of U.S.Dollar which will further affect U.S.Economy and corporate earnings. So the Fed is now caught in a situation from which it can neither go up or down.
At one point, not many people accepted the very fact that housing price can fall at all and then came a stage when many said that a fall in housing prices will not affect the economy. Now still a lot of them are saying that it may not be that bad to send the economy into a recession. It is clear signs of hoping against hope and refusing to accept the realities of the situation.
After all, the opinions of experts in Stock and Financial markets, Mark Faber(who has predited a 30% correction in most of the emerging markets from their tops) and Allen Greenspan,Former Fed Chaiman(who has warned that the current crisis is similar to 1987 and 1997 crisis) can not be taken that lightly.
I will post seperate articles on the previous housing collapse in U.S in 1920-1930s(in Florida,Miami) and the stock market crash in 1987 soon. Till then hold on to your money tight and watch the fun as it unfolds. Good Luck.