A Diwali without lights......

    There was a time people singing and dancing when they saw the SENSEX breaching the 20000 barrier. Large amount of investments flowed in. Market went through a period of a buying spree. Those who never heard of stocks withdrew their fixed deposits and savings schemes and invested in equities. Some even went a step ahead sourcing the money for equities from bank loans!! And now we hear the screams and cries. If there is no money to buy a piece of rope to hang oneself how can Diwali be celebrated with lights?
   
    All categories of people are affected - Warren Buffet and aspiring Warren Buffets, BIG Ambanis and other top industrialists, entrepreneurs and small industrialists and the common man. I hope there will be lot of people having the similar experience or heard of others talking.

    It's wrong to call people invest in equities greedy. But isn't it overconfidence or greed to expect the index to reach 30000 when it just crossed 20000? US economy has been in downward spiral since 2007 mid. Paul Krugman predicted the current downfall in 2006. The omens and predictions seemingly did not affect all the buyers in early this year. Good for all the lucky people who managed wisely when the index was at the summit!!

    What are the options left now? No one would want to sell at this point unless there is an emergency for cash. The only option is to remain calm and wait for a rise. If there is abundancy of cash this is the good time to invest. There is no doubt that equities will outperform debt funds in the coming decade.

    My hope remains in the fact that Dow was in sixties during the great depression of last century and it managed to cross 10000 points... Good Luck all...Let's dream one more 20k...