Who is responsible?

kkseal · #11 22nd January 2008, 10:01 PM

Strange, everybody seems to have forgotten about the Yen carry trade. Actually becomes more relevant now with dollar borrowing getting cheaper by the day.

kkseal · #12 22nd January 2008, 10:03 PM

Leverage (& it's easy availibility) is the main culprit - locally or globally The world runs on credit. Any imbalance & things go topsy-turvy.

uasish · #13 22nd January 2008, 10:59 PM

People who have seen Erosion of their Asset class are bound to be grieved & my heart is for them.Plz,my sincere earnest request ,from next time 1st see & decide where is the Stop ,then ,only then Size your Entry.Brother let the history not repeat itself.

surfingminds · #14 22nd January 2008, 11:22 PM

Quote:

Originally Posted by digest

the great fall?
billions have been lost in this market in last one week.
I was listening to the news in different channel.
Now everyone is talking about retail investor,
but no one is directly pointing or criticizing anyone
but one thing is common
Many are saying that RAW has been warnong goverment for terroists fund being invested in our market thru FII but goverment has not taken any action?
two from last six months RBI is warning goverment but again no action?
but even after that goverment has been motivating retail investor to invest?

it is no point to discuss how many families will come on road ( CNBC awaz)
so who is reponsible to the miserys of retail investor and what should be done with them? may be some might also kill themselves?

lastly is there any lesson to be learnt?
may be all of us have lost som money including me.
even though i have never invested big money but loss is loss.

can anypne explain me what is true and why this is happening and will market revive?
i have lost most in RPL i bought it for 248 and now

i have told my broker to sell it yesterday but

1.We are responsible for our own loss or profits as we are responsible for the buy or sell decision but this discsions are influenced and limited to our experience and expossure to the information.

Every one was aware and witnessed how market moved in up like their is no tommarrow and in this euphoria in this psychology every one was investing and earning. .even i invested but at that time i was counting on market centiments rather than fundamentals.

I also invested on RPL at 200 levels but fundamentally i was not convinced still i went with the pshyche. RNRL was good buy for me as i did it at 90 but again for both its just expectation they havn't produced any real growth in terms of money.. so don't worry either average out or try to buy some better and fundamentally strong scripts.

I can't believe suzlon energy, Jayprakash associate they came down suzlon is down even below its IPO. can a day change the fundamental view.. every one was expecting this wind energy provider to be a great future prospects.

80% down in a day. I am very sure to buy this script at least it will give me opprtunity to invest in wind energy initiatives... and i have gone through their web site they have reached great milestones ....

digest · #15 23rd January 2008, 12:09 AM

Quote:

Originally Posted by kkseal

Leverage (& it's easy availibility) is the main culprit - locally or globally The world runs on credit. Any imbalance & things go topsy-turvy.

yeah kseal i agree with you here.

otherwise we are responsible for our own losses.
but in this scenario where market drops from 21000 level to 16000 level its not a samll thing.

no technicals work.

as someone has said "there is no future of those who play in FnO."

about foriegn investment there is mixed response many says that selling is taking place locally n not fi's ( on ndtv profit).

or is it just another game ( not my view)
sell> let the market fall> then buy again

what ever it is, not a one man show isnt it?

i guess all of us over here either have lost money from our profits or little amount.

none of us borrowed to invest?i guess?

who ever is responsible it is much easy to give explanations and criticize after it happens.

some people say they predicted it but these predictions are coming since market crossed 6000 level.

is there any technicls which clearly indicated this kind of correction ?

amitt29 · #16 23rd January 2008, 12:17 AM

Quote:

Originally Posted by sudoku1

why friend ????
when the same mkt were trading 7000 pts in the air in just 5 months....why no complaints....
the invstrs themselves r responsible for the current states of the mkts .....
till sensex closes abv 18500....dont b in for pleasures if mkts recovers.....

How come theres one minute time difference between the tawakley reply and sudoku1's post.

Something fishy.

Also the order of occurence is wrong.

kkseal · #17 23rd January 2008, 12:39 AM

Actually by leveraging i meant in a broader sense, not just mkt F&O. Look at the US hsg mkt bubble (or any bubble for that matter). What was driving these asset prices? Even at the peak of the bubble people were buying properties expecting still higher prices. FIs were lending recklessly 'coz they were flush with funds In the US as much as 70% of consumer spending is on borrowed money - this in a country where savings rates are low. So where did the money come from? It's the same arbitrage game - borrowing where the rate of borrowing rate is less & investing where returns are more - as long as this game is in the hands of the savvier folks it's sustainable, but once it starts trickling down throughout the system (inevitable, eventually all dogs sniff easy money) the spiraling effect becomes self-destructive (it's like the difference between controlled fission - nuclear power - & uncontrolled fission - nuclear bomb; & in today's globalized world it becomes a 'fusion' - hydrogen bomb).

The same analogy can be applied to stk investing/trading as well.

Regards,
Kalyan.

kkseal · #18 23rd January 2008, 12:48 AM

The FIIs have been distributing for quite some time, but somehow the selling was getting absorbed (by domestic money What else). Footprints of this distribution were evident on the charts too - the broad channels - not only in indices but some bellweather stks as well. Then came the 2 IPOs RPower & Future & the cushion of domestic money fell short. Some mutual funds too started booking profits The imbalance suddenly became large.

Regards,
Kalyan.

Jason Bourne · #19 23rd January 2008, 01:22 AM

One of the major reason for this damn crash is the STUPID Reliance Power IPO.
They have squeezed a lot of liquidity from the market and have prevented buying power from coming in to the rescue.

Anil Ambani has paid the price for his misadventure. What is the pride in telling that his stock has been over-suscribed 73 times ? he has lost 15 Billion due to his misadventure
and so have manny other retail investors.

I entered the market when it was about 18,500 but still I have witnessed a huge erosion in my portfolio. I can understand how investors who invested at 20,500 levels feel.

But there is a very important lesson in this all. NEVER INVEST WITHOUT FUNDAMENTALS
THERE IS NO SUBSTITUTE FOR FA.

EVEN NOW, THE STOCKS WHICH ARE FUNDAMENTALLY STRONG HAVE NOT WITNESSED A HUGE EROSION.

Lets hope for the best

Bourne

surfingminds · #20 23rd January 2008, 01:28 AM

Quote:

Originally Posted by kkseal

Actually by leveraging i meant in a broader sense, not just mkt F&O. Look at the US hsg mkt bubble (or any bubble for that matter). What was driving these asset prices? Even at the peak of the bubble people were buying properties expecting still higher prices. FIs were lending recklessly 'coz they were flush with funds In the US as much as 70% of consumer spending is on borrowed money - this in a country where savings rates are low. So where did the money come from? It's the same arbitrage game - borrowing where the rate of borrowing rate is less & investing where returns are more - as long as this game is in the hands of the savvier folks it's sustainable, but once it starts trickling down throughout the system (inevitable, eventually all dogs sniff easy money) the spiraling effect becomes self-destructive (it's like the difference between controlled fission - nuclear power - & uncontrolled fission - nuclear bomb; & in today's globalized world it becomes a 'fusion' - hydrogen bomb).

The same analogy can be applied to stk investing/trading as well.

Regards,
Kalyan.

And I am now worried as such kind of global hydrogen bomb might reach to distub the funamentals of economy.
Our economy and growth story would be effected and might take 1 year back after all it will some how effect the flow of money which is lost during this crisis.