Markets have been making a fool of bears for a long time now, and there was nothing new in its behavior over the past couple of weeks as well. Initially, it appeared that all the bulls have gone quiet taking a breather, and bears came out with their daggers. A week of fall in the markets, and we all thought ‘This is IT’ – a phrase which eventually got related to Michael Jackson more than the markets.
So, it wasn’t this time again, and the party continues. US has made it very clear that they aren’t going to raise the rates anytime sooner. Effectively, they would continue to write blank cheques, and the champagne would keep flowing.
With all the talks of rates hike marginalized, I go back to my bullish stance, and think that the round for correction is over. Now, we are back to listening to the Rally Monkey chants. Last year, there was no year end rally, but this time around, there may be one.
Food for Thought: Markets for the last couple of years (from when I have started observing) haven’t changed their trend in the months of November and December. In 2007, the party continued late into the night, and the music stopped early in January. Similarly, in 2008, the markets continued to fall down, and only recovered in March. So, in both the years, November and December just continued the overall annual trend of the market. And think it would be same this time around. If not a sharp rise, we shouldn’t end lower than the current levels.
So, it wasn’t this time again, and the party continues. US has made it very clear that they aren’t going to raise the rates anytime sooner. Effectively, they would continue to write blank cheques, and the champagne would keep flowing.
With all the talks of rates hike marginalized, I go back to my bullish stance, and think that the round for correction is over. Now, we are back to listening to the Rally Monkey chants. Last year, there was no year end rally, but this time around, there may be one.
Food for Thought: Markets for the last couple of years (from when I have started observing) haven’t changed their trend in the months of November and December. In 2007, the party continued late into the night, and the music stopped early in January. Similarly, in 2008, the markets continued to fall down, and only recovered in March. So, in both the years, November and December just continued the overall annual trend of the market. And think it would be same this time around. If not a sharp rise, we shouldn’t end lower than the current levels.
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