I call this blog a Scrambled Erratum! The description goes like this - "Aggregate of individuals
are left in confused state as even the smallest subatomic matter in their respective brains make
them scratch their heads by self or mechanical/electronic means, intentionally/unintentionally
deviating from what is correct, right or true."

HOT Stock Market crashes!


Yesterday almost all sectors were red due to sudden dramatic decline of stock prices across a significant cross section of the stock market. Crashes are driven by panic as much as by underlying economic factors. As U.S. market crashed on Monday, the fear wave made the Asian market slip from the edge of the asphalt salt.

A prolonged period of rising stock prices and economic panglossianism, a market where P/E ratios (P/E = Stock Price / Earnings per share) exceed long term averages, and extensive use of margin debt and leverage by market participants.

For local share investors, financial horror has firmly set in as their wealth washes away. For retirees, their savings are shrinking as superannuation funds post huge losses. And the future is not bright in the world's biggest economy. While US markets were closed overnight for a holiday, US stock index futures were down sharply, suggesting investors were preparing to flee the US stock market when the market reopened.


As the shock wave shook the world with total loss of 20 * 10^12 rupees (20 lakh crore).

The local stock market collapse is the longest losing streak since January 1982 and yesterday was the All Ordinaries' worst day since this year’s fall began - wiping out all the huge gains of 2007.

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4 Comments:

Blogger Karthik said...

Yep ths s te hot topic for te past 2 days....but cld have made it more interstin .....rather a news u cld have blogged it on....

8:12 AM, January 23, 2008  
Blogger Raghuveeran said...

@karthik
Well this is the way i write. I wrote this in short span after going through the news paper. I was writing another post so i wasn't interested in elaborating this.

8:43 AM, January 23, 2008  
Blogger subramani said...

The share market seems is teaching us that ups and downs are part and parcel of life.

4:30 PM, January 23, 2008  
Blogger Krishna said...

Frankly speaking. You shouldnt have written this blog in first place. U have a standard of givin elaborate descriptions and care for minute aspects. WHy do u undermine the standards set by you just for the sake of posting a new post?? "Lets write about issues where we have our expertise and where we think we can do justice." U said a variation of same dialouge to me.

As far as the topic goes, this was expected. U cant expect the stock markets continue their bull runs. All of us knew that US economy was getting weaker and global panic was expected. Chidambaram said ours is a very stable economy, but its stabilized by the FII's and panic out there would defn destablize. Only thing i would do as an investor would be to sit back, dont sell until the markets stablize. THis way u can minimise your losses. And I would also contemplate on investing on some mid cap or large cap for which i can see a growth in future. Cose a crash is the best time to enter markets. After all stocks are a gamble and u must be knowin abt the risks involved before entering. Once u enter there is no use cryin over losses.

Krishna
www.devilzadvocate.wordpress.com

12:27 AM, January 24, 2008  

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