market passion

Saturday, December 27, 2008

WHEN & WHERE IT WILL END??????????

It has been an eventful year for Stock markets worldwide, so rough and bumpy that it could challenge the Chennai Autorikshaw wallas.As all good things come to an end, the 5 year bull market also did the same, though the end was painful enough to remove all the happiness that the good times provided. And nobody knows as of today whether the pain is over or not.After scalling steadily from 3000(sensex)in April 2003 to 15600 in September 2008(which I thought was the peak),sensex became senseless after the cut in U.S.interest rates,which started on the 18th Spetember 2007 and went on to hit 21200 by December 2007. Now the U.S.interest rate is down to 0-0.25% but the same senseless SENSEX is down 50% from the top. So once again it is clearly established that market discounts the fundamentals far ahead(6-12months) of the actual events.
Now that the interest rates,commodity prices- particularly Crude Oil are all coming down, the buzzword in the market is SLOWDOWN. Now the slowdown has hit all sectors and the sentiment is full of gloom and doom. The last 2 negatives to come out in the open in the next 3-6 months are CORPORATE RESULTS and ELECTION. This also coincides with the expected TIME WISE Correction of 18 months.
So, in my opinion, it is time to list your PORTFOLIO CONSTITUANTS now and get ready for the next bull market. By March 2009 you should have invested atleast 15-20% of your surplus and by June 2009 atleast 40-50%. To know which sector and what shares,
please wait for sometime or write to me at: sairam_1983@yahoo.com. Take care. Have a great year ahead.

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