Sunday, February 05, 2012

GOOD OBSERVATION



----------------------------------PLEASE READ ONE OF THE GOOD OBSERVATION FROM MASTER.........

Here are my observations for your last post and the markets. Markets will go lower when everyone are least expecting it not when people were talking about 4200 and 3900 possibilities. Also Markets lead the data by 2 to 3 quarters in advance. That said 4530 in the last quarter of December was reflecting the earnings data of Q1/Q2 2012 results.

Amount of money being pumped by Obama's administration will keep the markets afloat as you rightly pointed out as 40 nations across the globe are going for polls this year.

2013 and 2014 years seems to be heading to rough patch and we will be seeing huge downfalls in the market in 2014 like what we had in 2008. Temporary fixes in the markets wont help like what all the central banks in the world did back in 2008 by pumping in more liquidity. It has to stop somewhere and looks like a reset to all the developed economies is bound to happen in next 2 to 3 years which would lead to the era of chinese,brazilian and indian economies dominating the 21st century bull run.

Please share your valuable thoughts. 

One simple word "Mass Psychology" is the tool all the smart investors across the globe have in their kitty. Fundamental and technical analysis are the tools they use to manipulate the markets in the direction they want.

RajeshMuppaneni

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Masterji,
 

Good post.
The approach is very good but economic indicators needs to be included

B.NageswaraRao

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