Picking up the pieces - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Picking up the pieces

Sep 22, 2001

The bourses have lost over 8% in the past week as the world comes to grips with the WTC bombings and their cascading effect on investor confidence. Globally, the bourses are trading at record lows but investor confidence has ebbed so low that nobody is ruling out worsening of the situation.The bourses were already struggling with an economic slowdown. Profit warnings and job cuts were common place. The US Fed cut interest rates seven times in a bid to revive the US economy. Post WTC bombings the investor confidence has taken a turn for the worse. Even an unprecedented eighth rate cut by the US Fed has not been able to save the bourses from a virtual carnage.

Indices15-Sep-0122-Sep-01 Change
Nikkei10,0099,555-4.5%
Hang Seng9,6558,934-7.5%
BSE2,8302,600-8.1%
Dow9,6068,236-14.3%
NASDAQ1,6951,423-16.1%

Top companies like Boeing have announced slashing 20-30% of total jobs and Morgan Stanley has recorded a 41% drop in August profits. Back home, Hughes Software cut its earning expectations and there are rumours that other software majors are likely to follow suit. Recession is word that is being commonly used now.

But experts are beginning to wonder whether this sort of aggressive reaction to a bombing in one part of the world is justified. With countries and cultures continually at loggerheads with each other there are bound to be crisis situations like these in the times to come. Thus such situations cannot be allowed to rule the state of the global economy. But then others point out that when the economic powerhouse is attacked, the confidence of that nation and thus the world is shaken.

In the past two weeks the Sensex has lost over 19% and is trading at its 8 year lows. Though market participants agree that it does not reflect the fundamentals of the Indian economy, nobody seems to be willing to back this up. Whatever the outcome between the US and Afghanistan, the truth is that the bourses may not be able to climb back as easily as they have plummeted.

Equitymaster requests your view! Post a comment on "Picking up the pieces". Click here!

  

More Views on News

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

Dollar Index (DXY) Headed to 100 (Fast Profits Daily)

Nov 30, 2021

This is why I think the dollar is about to get stronger.

How to Pick the Best Growth Stocks in FY22 podcast (Views On News)

Nov 30, 2021

If growth investing interests you, here's what you need to know.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

How to Find Your Next 10-Bagger in this Market (Profit Hunter)

Nov 19, 2021

The #1 make or break factor in your portfolio you shouldn't ignore.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Nov 30, 2021 (Close)

MARKET STATS