I think it is fairly evident by now that valuations are determined largely if not only by credit inflows. I mean exiguous inflows and stocks turn bearish.
Excessive inflows and stocks are bullish.
Given credit woes in US and Europe there has been an efflux of funds back to their origin. Which also gets one to ask, "what didn't they see it coming."
Or did they just wake up one morning and say oh my, we don't have a credit balance.
I don't know what happened to the census that stocks are valued as per future earnings, looks like future earnings for most blue chip companies went for a toss. Did they just evaporate?
So now our punters tells us that stocks valuations are still good in the long term as evidently they have just fallen through for now.
One wonders how true is the India growth story about order books in the domestic market being full and can keep the economy on growth. Well if so, what happened to domestic funds to prop up these languishing levels in the stock market.
Maybe no one knows what is the truth, everyone is just guesstimating.
Everyone is waiting for some one to move and that someone is waiting for everyone to move, in chess its called 'stalemate'.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment