– The doubts raised on the sustenance of the recent two days rally in light of the Dow failing to close above certain points came true. The markets dropped yet again, giving away all the gains just earned recently. The recession fears ruled again giving way to the cracks in the markets globally. Why does market over react again and again is difficult to understand especially when literally everyone knows that US is near to that.
– The announcement by Yahoo cutting 1500 jobs highlights that the reple effects are to be felt by many companies in the near future. There are mails and articles floating around that Warren Buffet is buying and that is true as he is known to accumulate when the markets are bleeding. How many can dare to follow him is another Q.
– The target of 2840 has already been given few times and though I hope it does not achieve, looks like the pessimism in the market is determined to test it. Globally there might be problems but there’s nothing much to fear in India even if the growth rates fall to 7 – 7.5% The Govt has to be proactive now, if it wishes can do wonders. The high rates of Interest can be used as a huge armour and every 0.25% cut can wound the the bears severely.
– Many Many Investors are holding ULIP’s and hence the Insurance players can play a vital role. As per some estimates ULIP’s alone can bring in 10000 Crs every year.