vikrantverma
Vikrant Verma
see stock market follows a cyclic pattern, the market firstly goes up and up and reaches the maximum, and then the market falls aflls, and ends very low.
market reached all time high of 22k which was nto justified.
Q) why i m saying that market at 22k was not justified?
ANS) see, the market should have ideally reached 16-18k, due to the cyclic trend and due to globalization etc, but it reached 22k mainly due to endlss funding coming to the indian companies by the FII's. due to the funding coming, there was a lot of money with the companies to invest in the development program and this led to market sentiments getting better and the prices kept going up.
"US economy" was the first to fall prey to recession and the US went into depression. now the FII's which had invested in INDIAN companies, went BEAR because oof this recession in US, so they withdrew all their money from the INDIAN COMPANIES, now if suddenly so much money will move out of the economy, so obviously it will go down. as a result of withdraw of FII's. the INDIAN economy also ent into depression. and the index crashed from 22k to 8k.
in 2008, the market went to an astonishing 22k, which is the all time high, and it's a simple fact that BIGGER THE BUBBLE, DEEPER IS THE BUST. the bubble of 22k was a huge one, so the bust following it must also be big.
and now we are in the declining phase of the life cycle f STOCK MARKET.
so market will remain low for the coming 3-4rs.
market reached all time high of 22k which was nto justified.
Q) why i m saying that market at 22k was not justified?
ANS) see, the market should have ideally reached 16-18k, due to the cyclic trend and due to globalization etc, but it reached 22k mainly due to endlss funding coming to the indian companies by the FII's. due to the funding coming, there was a lot of money with the companies to invest in the development program and this led to market sentiments getting better and the prices kept going up.
"US economy" was the first to fall prey to recession and the US went into depression. now the FII's which had invested in INDIAN companies, went BEAR because oof this recession in US, so they withdrew all their money from the INDIAN COMPANIES, now if suddenly so much money will move out of the economy, so obviously it will go down. as a result of withdraw of FII's. the INDIAN economy also ent into depression. and the index crashed from 22k to 8k.
in 2008, the market went to an astonishing 22k, which is the all time high, and it's a simple fact that BIGGER THE BUBBLE, DEEPER IS THE BUST. the bubble of 22k was a huge one, so the bust following it must also be big.
and now we are in the declining phase of the life cycle f STOCK MARKET.
so market will remain low for the coming 3-4rs.
