It would be nice to be aware - if at all one goes by the stock index as a barometer of the country's health - that the Sensex went up 3000 points in the last 1 year before it went down 1000 points. Perhaps one should also be aware that the reasons for the FIIs to panic is a rumour about what tax rules apply - Capital Gains or Business Income. Any time tax rules change in any country, the fundamentals for many companies change too. It is basic math.
C-da talks grandiosely about fundamentals. It would be nice to note that if the economy is growing at 8% there would be enough fundamentals for many well managed companies. Talking of fundamentals, have you done any research on what many of the companies are earning as returns? Offcourse there would be a lot of people making wrong decisions about betting on the wrong horses in both good times and bad. That is why stock markets run the way they do. The average Indian (as also an average American) who does not know investing should not be a retail investor - if at all he should be investing in mutual funds. Some of the best funds yielded returns of more than 100% last year and an average of more than 50% in the last 3 years. C'da, it is a wrong horse in the Indian stable to whip about. Otherwise you would not have waited all this while to do so in a "I told you so" mode. You and the Indian communist party members are the only one doing so. --- Chan Mahanta <[EMAIL PROTECTED]> wrote: > > The big differences are: > > 1: In the fundamentals of the companies being > invested in. > > 2: Institutional checks and balances ( read: > Umesh's mention of Harshad Mehtas et al, the FM's > loose comments on taxing FIIs) > > If the 1 above had a solid foundation 2 could not > cause the kind of havoc it has. > > India has not seen the big fall and the Great > Depression. But this one ought to teach Indians a > lesson, a lesson much grimmer, I am sure, than > what developed economies have been experiencing > or experienced in recent decades, considering the > average Indian's circumstances. > > Indian stock market movers fancy themselves the > new Wall Street considering all the desi > analysts, desi Bus. Mgm't whipper-snappers at > Wall Street. But the average Indian does not know > the difference. In fact some otherwise savvy > Indians constituting he new > desi-knowledge-brigade don't either, as we have > seen right here in this forum. > > > > > > > > > At 12:18 AM -0500 5/23/06, Ram Sarangapani wrote: > >C'da, > > >Speculative forces, such as FIIs that drove up > >Sensex, creating an illusion that the > >desi->economy is on a roll, is ephemeral. > > > >Isn't that the nature of financial markets - ie. > >of expectations? Why single out Desis for the > >way sensex is behaving. All the world's major > >markets are taking a beating this past week. > > > >Heck, even for a small time investor like me, I > >was counting on the millions 10 days ago (when > >the DOW was at heady heights), and then the > >millions vanished. Will be lucky if I get away > >with my principal. > > > >As for our Umesh's idea of a Buffet style > >investing (long, big cap), most investers in the > >US markets (like elsewhere) are short, small or > >medium cap. Long, big caps require huge > >investments, and that will have to wait till I > >make them millions. > > > > >creating an illusion that the desi-economy is on > a roll > > > >Following that logic, the US economy is doing > >pretty well (actually on a roll) - why then is > >the DOW not reflecting that? Why the > >roller-coaster effects of the past couple of > >weeks? > > > >In the C'da - the markets only reflect > >only investor expectations. You could call > >it "irrational exhuberance" :-) > > > >--Ram > > > >On 5/22/06, Chan Mahanta > ><<mailto:[EMAIL PROTECTED]>[EMAIL PROTECTED]> > > >wrote: > > > >I don't know if he does. Have not spoken to him > >since 1968, even though he was a fine younger > >friend. > > > > > >But I do have one: Gambling is NOT for everyone. > > > > > >Speculative forces, such as FIIs that drove up > >Sensex, creating an illusion that the > >desi-economy is on a roll, is ephemeral. I > >remember our good friend Mayur lamenting about > >Kharkhowas' ignorance about making easy money on > >'derivatives'. And I remember vaguely about a > >Sentinel editorial of recent weeks lamenting > >about the Oxomiya populace unaware of 'right > >wing ideology' or some such thing--whatever that > >meant, but it would seem now the ignorant ones > >must be having the last laugh. > > > > > > > > > > > > > > > > > > > > > >At 2:38 AM +0100 5/23/06, umesh sharma wrote: > > > >>C-da, > >> > > > > > >You have rich friends! Does he have any tips for us > Desis. > > > > > > > >Umesh > > > >Chan Mahanta > <<mailto:[EMAIL PROTECTED]>[EMAIL PROTECTED]> > wrote: > > > > > > > >You have got to stop comparing the US scene and > >its players with the Indian scene and its > >players, Umesh. They have little in common, > >other than on the wrapper. > > > > > >BTW, Warren Buffets right hand man, one of his > >closest confidants, is a desi, a junior wingmate > >of ours from IIT-KGP. > > > > > > > > > > > > > > > > > > > >At 2:07 AM +0100 5/23/06, umesh sharma wrote: > > > >>In the land of Big Bull Harshad Mehta and Con > >>Artist Ketan Parikh it is only fools who invest > >>in Indian stock market. People should learn > >>from Warren Buffet (world's top finance > >>investor and second richest man ) who only > >>invests LONG Term in stocks -which he gets > >>great deal of info and analysis. > >> > > > > > >Umesh > > > >Chan Mahanta > <<mailto:[EMAIL PROTECTED]>[EMAIL PROTECTED]> > wrote: > > > >I hope none of our desi-investment promoting > >friends is being hurt by this. And if they are, > >hope not too badly. > > > >Is the end of the nightmare in sight yet? > > > >cm > > > > > > > > > >On a day of crazy swings, Sensex sinks below 10K > >[ Tuesday, May 23, 2006 12:34:10 amTIMES NEWS > NETWORK ] > > > >RSS Feeds| SMS NEWS to 8888 for latest updates > > > >MUMBAI: It was a raging storm. The market turned > >crazily wild, lashing the Sensex with such > >ferocity that at one point it plumbed down over > >1100 points. Trading had to be suspended. Or else > >the ship might have sunk. When trading resumed, > >the storm hadnâ¤t cleared, but the market clung > >to the lifeline of assurances thrown by the > >finance minister, RBI and SEBI. It clawed back > >some 700 points, but still closed 450 points down. > > > >Veterans tried, and failed to recall this kind > >of volatility. In just seven sessions the market > >has sucked out over Rs 6 lakh crore of > >investors⤠wealth. And there are chances of > >further losses. Some brave souls claimed the > >worst was over, but the considered advice of > >seasoned players was: "Donâ¤t try to catch a > >falling knife â¤" donâ¤t try to predict the > >bottom of the market. Not yet." > > > === message truncated ===> _______________________________________________ > assam mailing list > [email protected] > http://assamnet.org/mailman/listinfo/assam_assamnet.org > __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com _______________________________________________ assam mailing list [email protected] http://assamnet.org/mailman/listinfo/assam_assamnet.org
