Settle the Scores……Valuations next!

The “Bulls and Bears” fight at the streets intensified and may lead to a disaster. The company’s valuations are based on the earnings and the future performance with a projection. But now the wild spree has become so wild that may harm the small investor- the real backbone of the stock market.
The polarization of the investment groups supporting a few companies or a sector will create grudge on the operating group either it could be the FIIs or MFs. However great potential a company/ industry has that can deliver better results but it is only an assumption and assumptions can go wrong at any point in future. For whose sake the run –up in the markets when it was absent a few days back. There was no real change in the companies earning or in the economy.
The Nifty was closed at 4494 on last Monday and today closed at 4932. The sub- prime issue was not resolved, it is simply 50 basis points cut can’t bring so much of money to our markets at this astronomical prices, then for whose sake "We are celebrating at our bourses".
Do we mean that the FIIs do not have calculators or do not know how to calculate the valuations and blindly buy at the price that is offered?.
Any way the old adage is always right- “Buy Low- Sell High”.