US Markets loose confidence……What should we do????:

Analyst:
Gurukrupa Capital
E-mail: contact@gurukrupacapital.com
www.GurukrupaCapital.com


Introduction:
The United States of America is blessed by abundant natural resources, a well-developed infrastructure, and high productivity. It is a capitalist mixed economy, which. The economy of the United States has been the world's largest economy since the early 1870s; its gross domestic products (GDP) was estimated as $13.8 trillion in 2007.

Economy Analysis:
As we all know, United States is in the centre of severe financial crisis. Improper functions and Oil prices can be the main reason for this heavy slow down and thus US Markets loose confidence. Major Capital goods sectors and decline of housing market prices will affect the economy adversely.

In previous days, Fed Bank had tried to support the entire U.S. economy by providing $200 million. Over and above Fed rates have been decreased by Fed Bank. Besides, looking at the price of Dollar we don’t expect mush favor of currency to strengthen US financial Markets. U.S. mortgage market had suddenly climbed up in couple of months as the housing industry's prices fell. This shows the instability of US realty Estate.

President George W Bush is also afraid of this heavy downfall and he believes that the Entire US economy is in danger at now.

However, we foresee that US Government shall plan some economic modules with the assistance of top economic experts within couple of days. Financial Rescue Plan can also be made by their experts. But it will not be able to bring sudden results to over come this situation. They should face this struggle till the end of this year.

Looking at this current scenario, Gurukrupa Capital suggests our Indian Traders and Investors that kindly don not overtrade in these critical situations when our Indian Economy can be negatively affected by these global worse situations. Our domestic Investors have to save their capital to invest in forthcoming months because it is expected that after November 2008, global economy can find the way out from Depression.

Our Domestic Markets are shall also remain on the lower surface due to these global depression. So kindly be aware of our Realty Index, IT Index, Capital Goods Index and Bank Index also. Gurukrupa Capital suggests you to not invest your entire Capital into these above mentioned Sectors.

The high level of Volatility seems in forthcoming months. Gurukrupa Capital believes that after November 2008, traders may experience slowly progress in all financial markets. All investors must have to be aware of Investment in Capital Goods and Banking Sector. So by the year end, we at Gurukrupa Capital expect the economy to improve slowly and steadily.


Gurukrupa Capital wishes you for your trading and Investments. Kindly do not over trade and save your Capital to invest in upcoming months.

Guru’s Grace,
The Gurukrupa Capital Team