Is it Rational to Buy,Hold or Sell Now ?
Or is it Irrational to Buy,Hold or Sell Now ?
There,I’ve covered all scenarios in the above two anxieties
Following the 508 pointor 5.11 % drop in the Dow yesterday to close at a Five Year Low of 9447 the Markets round the world in Asia and Europe have capitulated today…capitulated is a strong word
- Nikkei 225 in Japan closed at a Five Year Low crashing 953 points or 9.38% lower at 9203
- One of the Exchanges in Russia has halted trading till Friday as it showed a drop of nearly 15% in the first few minutes of trading
- Indonesia halted trading as the Index hit the 10% lower circuit
- All major Indices in Europe and Asia are down by between 5% to 9 % today
The Banking World is also on the Edge
- Iceland has nationalised it’s Biggest bank
- UK Government has announced a US $ 84.7 Billion rescue package for banks and will be infusing fresh Equity capital into them
- Ireland,Austria and Greece have guaranteed all bank Deposits
- US has already cleared a US $ 700 Billion rescue package for the Financial Sector
So Who do you trust ?…your Banker…your Broker…your Advisor ?
Trust your own Instinct,Common Sense,Rationality and Reasoning
So is it Rationale to Sell Now ?…No…unless you firmly believe that Capitalism is dead
So is it Rational to Buy Now ?…Yes…Look for Opportunities….if you believe in Equity and are convinced that we are entering Distress Price Levels and Panic Bottoms as the Sensex slips below 11000…Of course you need both Conviction and Cash to do this…and ofcourse the Confidence and Competency to make the Correct Stock Selections at Distress levels.
If you are despondent,distressed ,disillusioned,devastated,depressed or even close to dead then pull yourself together and atleast Hold