Article;
The worst isnt over for emerging mkts .
Comment;
Keeping in mind the monetary-policy and interest-rate
trajectory (of the US too) correction in the stock-market makes sense... the
glimmer of market, so far, was due to foreign investment, the liquidity flowing
out of developed countries Central-Banks, of actually, Japan, the US and UK,
Europe and China, too, actually, all the major regions. But some are some are
now retreating… especially China
and the US…
China due to a debt hangover is expected to put breaks on easy liquidity… the
US, too, is reducing the stimulus as unemployment levels come near the target,
And, if it is INDIA how we can neglect the RBI’s role to stimulate growth by
affecting the real-economy by lowering prices and increasing savings by
offering higher real interest-rates… Therefore demand is going to be deterred
by a less loose monetary policy regime… But, we still have loose money-policy in
Japan and Europe.
Nevertheless, the US
will have (about) zero interest-rate as long as unemployment falls to 5.5%...
Our domestic investors in INDIA
are keeping their hands-off investment because they expect prices to go down
due to restrictive money-policies in the major part o the world, and in INDIA, itself; including China and the US… three major economies… they are
tightening the money… Investor will wait for more correction in the
stock-market… because it will be most profitable for the investor to buy at
lowest price and sell at the highest price… CPI is still above the comfort zone
and the RBI will tighten till it falls 6%... The market probably will see a
major correction…
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