The Current State of the Markets

Friday, May 17, 2019

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    The stock market has recently been on a downward journey. Historical records suggest this is the longest running loss in eight years.  With close to all the recent gains evaporating one wonders if the rise from 11k was an artificial one.   

Since last July every bounce in the Nifty was being driven by institutional money, both domestic and foreign.  Except a marginal rise the participation of the broader market indices was quiet low.  

Worryfully enough this trend that began in the past year just refuses to die down. It is as if the big guys are making an attempt to paint a rosy picture.To whom? The unassuming retail investor.   While these rise or fall may not rattle the sentiments of long-term participants the bigger cause of worry lies elsewhere.

 The fact that the global economic machine is not in top order provides little comfort.  The giants of the industrial world- the US and China are at loggerheads for sometime. Further, the US certainly is showing signs of a slowdown. The last recession came in 2008 and the next one is dangerously lurking around nearby.

 And in that case we could indeed be looking at great harm coming our way!    


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