RBI has hiked up CRR and REPO rates by 50 basis points each in total. That would be the proverbial one more straw on an already broken back of Sensex camel! Sensex touched below 14,000 today. Like the guy said on tv, buying now is more like catching "falling knives." Let the market makers decide what the bottom would be. We retail investors should sit on the sidelines until there are sure signs that the bears have disappeared. A friend of mine purchased after the March fall, and his portfolio of really good stocks has seen 30% drop already. I'd say 'wait and watch'. Now is the time to be ready with cash. The way things are going right now, Sensex could see 13700 levels soon enough with lower targets on the horizon. There are two related posts for which links are given below:
The Great Liquidity Crunch
Cycles of Boom-and-Gloom
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Paresh
If people put you on the SPOT, ask about FUTURE, and give you no OPTION;
just tell'em "the LONG & SHORT of it is How to Make Money!"
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Last edited by pkapadia; 25th June 2008 at 05:43 PM.
Reason: add links
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