STRONG RALLY

It has been a strong rally in most of the stock markets in the world ever since the U.S Fed cut interest rate by a surprise 0.50% as most market players expected only 0.025% cut.So the markets are in party mood forgetting the reasons for such a sharp cut and also irritating quite a few analysts in U.S. Because by its action, the Fed supported the (undue) risk takers and penalised the safe players. The crash of the dollar has begun and nobody can say now how steep it can fall.This is going to push the world's biggest economy into RESSESSION and put so many other economies in the world in jeopardy.
The Indian stock market also had its share of fun as SENSEX moved from 15660 to 17290 in just 8 trading sessions.Shares of the AMBANI brothers(mukesh & anil) were bought(or pushed up) as if there is no tomorrow. Already media have started circulating reports that their combined worth is close to 95 billion Dollars & making them the richest in the world, far outstripping Carlos Slim of Maxico who recently replaced Bill Gates at the No.1 spot.
The FIIs in India have invested nearly 4BLN dollars in Spetember alone and people say that is the reason for this steep rise. I always wonder that it is chicken & egg story in this case also. In the past whenever market peaked(check 1998 & 2000 figures) FIIs always pumped in the maximum and our Mutual funds smartly sold or atleast turned defensive. I am always a believer of the theory that OPPORTUNITY LAST IS BETTER THAN MONEY LOST, though many may not agree with me. So while value investing in individual companies can go on irrespective of the Index levels, playing momentum now seems highly riskly.I have seen this kind of euphoria quite a few times in the past and have been reasonably right in predicting the reversal, sometimes pretty early also. Anyway time will tell soon and till then I am enjoying the party by WATCHING FROM THE SIDELINES. BYE,BYE