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Amal
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| 30 November 2008, 21:06:20 |
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Friends
most of the times the markets reflect the short term trends which get miss read. Lets us be honest the real health is that the economies need to actually reverse the trends. What is happening is that the people are not spending due to the fear of uncertainities. Once the spending comes back (which comes only when the confidence comes back) then do we see the fundamentals change in a few quarters. these things dramatically change the numbers that get reflected on the indices. The larger picture will always be that the indices are now reflecting what would be a few quarters later. the indices may hit the bottoms even before the economy hits the bottoms and may bounce back while the economy may take some more time to do so.
So instead of isolating the numbers of the indices only may not give the correct perception. one has to see the other economic numbers that are periodically released by the goverment agencies, to derive the correct perceptions of the trends that might emerge from the current positions. |
