CLIMAX OR ANTI - CLIMAX

So it arrived in its own style and ferosity. The correction in Indian Stock markets is there at last for all of us to see. The proposed steps to regulate foreign investments thro P.N.s(Participatory Notes) was only a trigger. If not this, something else would have triggered the fall(welcome correction, if it may soothe the optimists)
And what a day for it to confirm the reversal, 19th October, which marks the 20th Anniversary of the great crash of 1987 in U.S.markets. On that day the Dow Jones(index of U.S.Market) plunged 22.6% resulting in a loss in market value of, just hold your breath, 700 billion U.S.dollars. I shall post a seperate article on how it all happened in 1987, what led to that crash and how it all started in 1982 and all.
We have been seeing in the last 1 month,specifically from 18th Spet2007 when U.S Fed cut interest rate by 0.50%, how the world markets were celeberating the rise in stock markets due to the liquidity factor.Most of the optimists forgot to understand(or choose to neglect)the seriousness of the problems in U.S Housing and Financial markets which forced the Fed to cut interest rate that steeply.Their minds refused to understand or accept reasoning and logic as easy money making usually do.
When lot of knowledgeble and experienced Analysts/Investors pointed out that the speed of the rise is dangerous and hazardous, they were told that MARKET WILL DO WHICH IT WILL CHOOSE TO DO AND THE SCREEN TELLS YOU TO BUY SO DONT FIGHT IT. And they were also told that holding cash in a Portfolio is next to stupidity when the market goes us 4-5% week on week.But when the market tanks under its own weight these optimists make a hue and cry about Govt.decisions and regulator's action. Now they dont accept that MARKET IS DOING WHAT IT IS SUPPOSED TO DO AND SO ACCEPT THE SCREEN.
And I am appauled by the noise created by CNBC-TV18 and Mr.Udhayan Mukarjee. I wonder whether they are running a Media channel or a Broking house. The way they keep looking at the screen instead of the camera and viewers, they way they react to every move up and down, the way they look for clues from Asia or Europe when sensex or nifty falls 100 or 35 points is crazy to understand or comprahend. I doubt whether Mr.Raghav Bahl checks once in a way what is happening in the studio or what is the quality of the content or programme. It is a channel which is supposed to cover the market happenings in general and the corporate happenings in particular as it is this factor which determines the stock prices in the long term. But then, the way they celeberate the rise of every 1000pts(including having a quick drink during the working hours) and the way they extrapolate the index to predict the same for deepavali or year end is nothing short of misleading the small investors.I am sure that many small(poor) investors were sucked into the Indian markets near its peak only because of CNBC-TV18 even against the advise of many of their stock brokers.
But now Mr.Udhayan should understand and accept that MARKET IS DOING WHAT IT SHOULD DO and not blame Mr.Damodaran or Mr.Chidambaram.
And to cap all these happenings in Indian market, the 20th anniversary was celeberated in U.S also in a classic way. The Dow Jones fell 366 points and Nasdaq 75 point, a fall of 2.65% each.
My view is that the problems of U.S market and U.S economy are far serious than people have understood so far and being in a globalised world, every major country in the world map will suffer because of that inspite of local economies growing. And the Indian stock market is still to shed and pay for its excesses in the coming days. So far only the positives are factored in by the market and from now on you will see the negatives getting factored in. This will take the market to the first level of 15500 for sure and maybe 13000-14000 in the next 6-12 months.Let us see how much of that MONEY which was WAITING IN THE SIDELINES gets in during these corrections and how much of that MONEY continues to remain in the sidelines or makes a quiet exit from the queue.