You've got to hand it to them, the yanks have coined a new term again - Banks are being put to a stress test ! What happens after the results of the stress test ? Would they be implanted with three stents in the heart arteries, as was done by my cardiologist after my stress test ( and a hefty bill followed ) ? Nope, they'd jut get another bailout package, as in the case of Bank Of America , $ 34 Billion only ! So it pays to have blockages (read meltdowns) and getafix !!
Bulls and Bears
And so,
The Bulls are back in the stock market ! The rapid rise in the sensex is representative of what happened just a year ago, and then the crash ! Is our memory so short ? What's driving the market this time ? Here are a few views :
1. The FII is back : the health of our market is inexorably linked with the buying and selling of the inimitable Foreign Institutional Investor. Rich with bailout packages received in their respective countries, they seem to have found cherry pickings in the very stocks they drove to the ground last year.
2.Caution to the winds : The retail investor, restless with holding on to funds and scrips, was waiting for an excuse to enter the market. What better excuse that that of the FII's have begun buying ? A good time to profit take, reinvest in a fresh basket of scrips, in general, spring clean ones portfolio.
3. Elections : As usual all rallies are based on political and economic sentiment. There seems to be a sense of urgency with elections coming to an end, and the prospect of a new government being formed. Will I miss the bus ? is the anxious thought in all investor minds, as it is the sensex has rallied from 9000 to 12000, and the next rally will take it to the 14000 levels.
The downside is that the bubble could burst if an anti reform, pro left government manages to come into power, or plays spoiler in a progressive government coming into play.
For the time being there seems to be a smile on all faces, tired of sitting on the fence, the retail investor has jumped into the fray, with a' who's seen tomorrow attitude',
So friends, "Live to die another day" !! Go hit the market !!
