Wednesday, October 31, 2012

Water, Fire and Darkness - Thanks to Sandy

So, the Nifty was indeed waiting for the RBI credit policy to act as a trigger to break the range. It finally went below the lower end of the range at 5630 and closed well below it at 5597, almost 68 points in the red. Well, some people would argue that it could be because of Hurricane Sandy too. I don't deny the fact that Sandy might have had an effect but had that been the case, the market wouldn't have traded in the positive before the credit policy was made public. The mayhem started at 11.
But what about Sandy? Well, the NYSE was closed for the last two days because of Sandy and chances are it would be closed today too. How will the US markets react to this? How will the world markets react to this? How will the Indian markets react to this? It is said that when America sneezes, the rest of the world catches a cold. What will happen to the world when America is "literally" drowning, burning and turning into darkness? Today, no charts for you, just some links where you can get some interesting tidbits about Sandy. First of all the destruction caused by the Hurricane Sandy. This page will give you a detailed description of the amount of destruction that was caused by the deadly toofan. Well, if you want to watch a video on it, you can get thousands on youtube. And this link takes you to one of them. And if the Sandy has caused so much destruction, how much will it cost the US economy. Well, it's a wild guess, but just to get an idea, you can visit this page. Whoa, that was huge! So, the markets are in for a long long long period of gloom, doom and disaster. You are not going to believe it but this page will take you by surprise. But what about the people who bought 3 days ago? People who bought and then the markets shut for three days and then they open deep in the red, they are going to lose a lot of money. Yes, they are and they should learn from their mistakes. This page will give you three lessons that you learn from closed markets. Please do subscribe to my posts, so that all posts are delivered free to your inbox and you don't miss any useful analysis of the markets in the future. Happy Investing!!!