From: sharetrading.
To: sharetrading@
Sent: Fri, 8 January, 2010 5:32:06 PM
Subject: [sharetrading] Re: MARKET CRASH like 2008 ? No way
There is no way we can have a crash similar to 2008
Let us recollect the circumstances at that time
1) Predictions of sensex from 30K , 40K to 1 lakh
2) Giant US banks and mortgagers collapsing one after another
3) Some Indian banks exposed to US mortagers CDO`s and CDS
4) US housing collapse
5) All Indian investors overoptimistic
6) All penny stocks flying like rockets
7) Huge long built up
Let us compare the situation now
1) World stimulus in place
2) Indian economy picking up along with Russia , Brazil and China , EU stable , US bottom nearing
3) Stimulus withdrawal will be gradual and impact of each will be assesed and corrective action taken
4) Indian investors are not superbullish but very cautious like these messages . If somebody were to write about an impending crash in early Jan 2008 , others would have made a mockery
5) Leverage reduced
6) Food inflation (except Sugar) in the process of topping out within 3-4 months
A correction of 10-15% a certainity , but exacly when -----
Only time can tell.
At least some stocks may not fall till budget
Textiles , fertilizers in expectation of budget sops
My personal guesstimates , March to May may be the final period to pick up stocks for the long haul
We better work with SL , wait and watch
But no panic please
--- In sharetrading@ yahoogroups. com, "srinivas" <srinupentakota@ ...> wrote:
>
> As we kneww that markets had over grown, can we expect the same crash as in 2008 jan will repeat again....... ...
>
The INTERNET now has a personality. YOURS! See your Yahoo! Homepage.
Happy Trading,
United we grow!!!
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