Not long. The valuations are above the sky and earnings are not growing in line with the prices of stocks. The entire rally for the past year was due to foreign funds inflow and Sensex has fone up by 44%. Expect a correction soon. But remember, speculators await corrections and buy at lower levels, this will bring the market back to previous highs as demand increases in short term. even though indian stocks have gone up by 44% due to FII Inflow and the influence of US markets, the US markets have seen a mere 12% rise. The indian stocks are moving up due to speculations and hence are bound to crash. It is just waiting for a ood reason like new elections and economic stability in global financial markets. Even US markets are witnessing leading firms like citigroup and JPM reporting losses due to subprime. This news alone is expected to cut the growing wings of all markets. so we can expect a major crash in all markets as soon as the fundamentals are out.
2007-12-26 21:03:23
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answer #1
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answered by arvind n 2
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Most long term rallies dissolved as a result of some trigger. Presently we have a number of problems that could serve as the trigger.
1. Sub-prime mortgage crisis in the US.
2. Weakness of core business earnings in relationship to investment earning is Chinese business.
These are some that I consider most concerning, but there are others as well. Naturally the sub-prime issue has already surfaced, but it hasn't really sent the markets into a nose dive. Teetering on the edge right now.
2007-12-24 02:03:16
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answer #2
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answered by Griffin 4
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Noboby can correctly predict that, but you can go to Stockcharts or Bigcharts and plot a WEEKLY chart of the SP500 ($spx on Stockcharts), put two common weekly moving averages, 20 and 50. When those two moving averages cross "bearishly" (20 below 50), the top is in. Likewise, 20 above 50, bottom is in.
2007-12-24 06:01:10
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answer #3
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answered by ? 3
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2007-12-25 23:24:18
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answer #4
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answered by Anonymous
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in the US, it may be over already.
the uncertainty is what keeps us thinking.
2007-12-24 02:06:34
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answer #5
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answered by Spock (rhp) 7
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If you're long term, it will last forever.
2007-12-24 07:04:42
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answer #6
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answered by pumpdatiron 6
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yes it will go on
watch stop loss of it on my blog
2007-12-24 03:54:22
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answer #7
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answered by dinu_pawar 5
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