Privy

Image courtesy Zadeus on Flickr.com

The Indian stock exchanges today got a sound breather. Both BSE and NSE are up today. Thanks to the festive season of Diwali and also the Gujarati New Year. The BSE will be open for muhurat trading tomorrow between 6:15 pm and 7:15 pm IST.

It might be that a lot of people are considering these days as auspicious for investment and hence they are grabbing all the shares that are coming fairly cheap. But, a lot depends these days on the US market and the other world markets. Indian markets simply follow the trend of other markets around the world.

A lot of this is due to panic created among the investors and also the FIIs pulling out the money to balance their investments in other parts of the world. But, there are a lot of individual investors who put a lot of risk behind their investment, in anticipation, by borrowing money to put into the stock market. There are lot of cases of suicides every time there is a major crash in the markets.

Caution is adviced.

Today a news popped up, the Mutual Fund market is going to collapse. MFs were always considered a safer bet for investment among all the high risk ones. The assumption is that there are people who are putting stakes to manage your investments. But, no longer true!

It’s not even a month before it all began. During one of the classes of our orientation came the news of the great Lehmann collapse. Since then a string of events in the finanical world (bubble burst – remember dotcom burst) have brought upon a never seen before liquidity crisis. The world is panic stricken and everybody has stopped cribbing about the rising crude prices (they have dropped now actually) and inflation.

Many of my friends have opted for a SIP (or Systematic Investment Plan) and I was really surprise to hear them talk about losses. I have stayed away from MFs only because I believe I can earn more by investing directly into the stock exchange (of course even I have lost money). Every time a stock falls, I feel encouraged and buy more – only needing to buy even more. The colors of the week are RED,

Despite this, we always find time to talk about cricket. Sloppy fielding, Australian (cribbing) media, Spinners vs. Pacers, Sehwag…M