All is not right with the markets. If euphoria follows panic so quickly, its time to sit out than be caught in the middle. Last when I saw gold cross 1000, oil was over 140. This time around oil is at 70. And may be the gold price is still reflecting a flight to safety? When the Indian stock market was at 16000, the US$ was at 40 and people were talking of 30. Then the market went down to 8000 and the dollar to 50. The market is back but the dollar isn't. Not so long ago, the US financial system was said to have seized. Some said that the Anglo-Saxon capitalist system had collapsed. But I saw the US$ became stronger than ever before. People said flight to safety. I said never seen people swim into a sinking ship. Now the Media says business confidence is rising, but I only see unemployment in USA at 9.7%, highest since 1983. US banks say they are returning tarp funds and are reporting turnarounds. But the World Economic Forum says that they are 108th soundest in the world....... just behind Tanzania. May be its all in the accounting rules…..
Gentlemen, all is not right...... 12000 is not far away.
No comments:
Post a Comment