Bulls 'n' bears slug it out - 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?  

Bulls 'n' bears slug it out

Dec 15, 2001

After rising higher for 11 consecutive weeks the domestic markets finally stopped for a breather. A similar trend could be seen on the bourses abroad. Investors, globally, seem to have pulled out of equities, as theories of the run getting ahead of itself seemed to be gaining ground. This was the second time since 1992 that the markets had a continuous run for 11 consecutive weeks. Incidently, the earlier run was in the first half of 1998, a few months prior to the start of the 18-month long bull charge running into February 2000. With a many investors espousing bottoming out of markets are we to fasten seat belts for a similar intoxicating ride? Currently, it seems, participants are spilt in the centre between the market running ahead of fundamentals school and V-shaped economic recovery supporters. Also, one might question, considering the 18 months of pain, do investors want to take that ride? and if not, will there be a ride at all?

Many investors are looking towards the U.S for signals of an economic turnaround. The U.S economy is largely consumer driven and reports on that front do raise doubts on a fully invested theory. The U.S consumer is indebted. U.S credit card and mortgage delinquencies have seen a rise, corporate lay-offs continue and though markets are up they are still below their peaks. On the other hand, the Indian economy is more government/private investment driven. There are fears that private investment has slowed down with the onslaught of global competition. But Government spending and better agricultural year could lead to higher economic growth.

Having run up in anticipation of an economic turnaround, investors are likely to wait for data to corroborate their hunch. Consequently, markets ahead, could be less exciting compared to the past 11 weeks. But, having factored in a turnaround, it runs the risk of having made a wrong call.

Equitymaster requests your view! Post a comment on "Bulls 'n' bears slug it out". 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.

Omicron: How to Position Your Portfolio (Profit Hunter)

Dec 2, 2021

Taking decisions based on speculative news is injurious to your portfolio.

AI-Driven SaaS Provider RateGain Travel IPO: Key Points to Know (Views On News)

Dec 1, 2021

This travel tech start-up is one of the largest aggregators of data points in the world for the hospitality and travel industry.

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.

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'.

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.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

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


Dec 2, 2021 11:27 AM

MARKET STATS