Bloodbath in the market
- Thread starter anuragar
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Re: Bloodbath on the market
Just wakeup very early and see what is happening on Hongkong and far east countries and take a cue. Today if you see the markets east or west have crashed. UK is also down heavily. US let us see how things shape up. Some say that analysts are not sure if the US can overcome the recession or not.. But we will have to wait and watch.
Just wakeup very early and see what is happening on Hongkong and far east countries and take a cue. Today if you see the markets east or west have crashed. UK is also down heavily. US let us see how things shape up. Some say that analysts are not sure if the US can overcome the recession or not.. But we will have to wait and watch.
Re: Bloodbath on the market
the problem with the U.S economy is not yet over...home prices are at multi year lows...it is expected that there will be credit card and auto loan delinquencies further down the line...but for our markets all is not over & one can start buying in cash in front line large cap & good quality mid caps in small quantities...patience is the key!
the problem with the U.S economy is not yet over...home prices are at multi year lows...it is expected that there will be credit card and auto loan delinquencies further down the line...but for our markets all is not over & one can start buying in cash in front line large cap & good quality mid caps in small quantities...patience is the key!
Re: Bloodbath on the market
krishna23,
It's not only the US that needs to see muti year low in home prices. India, china, Europe have to follow. A global recession is on the cards.
An acre of agricultural land 20 miles from the new airport in Bangalore costs US$100K! That's 5 miles of tar road and 15miles of dirt road. Go figure!
krishna23,
It's not only the US that needs to see muti year low in home prices. India, china, Europe have to follow. A global recession is on the cards.
An acre of agricultural land 20 miles from the new airport in Bangalore costs US$100K! That's 5 miles of tar road and 15miles of dirt road. Go figure!
Re: Bloodbath on the market
venkat...i am not saying that the US needs to see multi year low prices but it already has...the problem in the US is that people with poor credit(Sub-Prime) were given loans at steep rates so what has happened is because people tried to spend money they don't have and thus defaulted on payments causing foreclosure...
a global recession is kinda taking it too far...we have a gdp of 8.5-9%....in the worst case scenario it can go down to maybe 7%-8% and that is if things go really really bad...the FY09 sensex Eps is abt 1000-1020 so now some value has emerged for long term investors...
i am not saying that the market can't go lower i am only saying that good stocks have reached attractive levels...
venkat...i am not saying that the US needs to see multi year low prices but it already has...the problem in the US is that people with poor credit(Sub-Prime) were given loans at steep rates so what has happened is because people tried to spend money they don't have and thus defaulted on payments causing foreclosure...
a global recession is kinda taking it too far...we have a gdp of 8.5-9%....in the worst case scenario it can go down to maybe 7%-8% and that is if things go really really bad...the FY09 sensex Eps is abt 1000-1020 so now some value has emerged for long term investors...
i am not saying that the market can't go lower i am only saying that good stocks have reached attractive levels...
Re: Bloodbath on the market
Japan and China the chief manufacturing centers for the US will see a downturn when the US recession peaks. That's like top 2 or 3 of India's trading partners. I think the net effect will be more than a 1% hit to India's GDP. Japan's market has thus far corrected nearly 30%. 27% correction in the US usually indicates beginning of a recession.
I don't think the US is facing only a 'subprime' problem. Prime borrowers also cannot pay back because they borrowed too much hoping for asset price increase to make debt payments.
I feel subprime is not who you give loans out to, it is the loans banks give out based on inflated asset prices. I feel Indian banks will feel the same pain as their US counter parts. Those banks that helped finance the 100K/acre loans near Bangalore, will find themselves on India's 'subprime' loss takers list.
There is no federal institution in India that insures checking accounts. A bank run in India will prove disastrous.
Also, an economy in a recession with democrats slated for power expect more protectionism for US jobs.
Japan and China the chief manufacturing centers for the US will see a downturn when the US recession peaks. That's like top 2 or 3 of India's trading partners. I think the net effect will be more than a 1% hit to India's GDP. Japan's market has thus far corrected nearly 30%. 27% correction in the US usually indicates beginning of a recession.
I don't think the US is facing only a 'subprime' problem. Prime borrowers also cannot pay back because they borrowed too much hoping for asset price increase to make debt payments.
I feel subprime is not who you give loans out to, it is the loans banks give out based on inflated asset prices. I feel Indian banks will feel the same pain as their US counter parts. Those banks that helped finance the 100K/acre loans near Bangalore, will find themselves on India's 'subprime' loss takers list.
There is no federal institution in India that insures checking accounts. A bank run in India will prove disastrous.
Also, an economy in a recession with democrats slated for power expect more protectionism for US jobs.
Re: Bloodbath on the market
well i already said sub prime is just the beginning...next are credit card and auto loan delinquencies...
and abt real estate prices i do agree that they need a good correction and the realty boom is overdone in some places and our system generally sucks...but that dosen't mean there'll be a recession in india...
peace..
krishna
well i already said sub prime is just the beginning...next are credit card and auto loan delinquencies...
and abt real estate prices i do agree that they need a good correction and the realty boom is overdone in some places and our system generally sucks...but that dosen't mean there'll be a recession in india...
peace..
krishna
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