January 21, 2008 was yet another Black Monday followed by Black Tuesday.
Indian Sensex fell by more than 2000 points along with other Asian markets which corrected by 6-10%.
Reason- Growing speculation of US recession. There has been concerns growing about US recession, which will also impact global economy. Emerging economies like Taiwan and China are highly dependent on US exports, which range upto 60% of GDP for taiwan.
For Japan, it is concern on growth on internal japanese economy which got fuelled up by US factor.
US Fed has taken immediate emergency step by rate cut of 0.75% highest ever since 1984. US want to influx confidence in Global market to delete concerns of US economy and recession.
Indian market howevver saw lot of negative action. $160bn gone in 4 hours. In India, market had touched 21000, wherein lot of speculation has taken in place. Power stocks which had een great bull run were deeply hurt which corrected upto 70% in stocks.
Correction might be seen as good opportunity for buying stocks but here are few advice for you:
- Let the market stabilise, retail investors stay away and dont jump in to average in falling market
Indian Sensex fell by more than 2000 points along with other Asian markets which corrected by 6-10%.
Reason- Growing speculation of US recession. There has been concerns growing about US recession, which will also impact global economy. Emerging economies like Taiwan and China are highly dependent on US exports, which range upto 60% of GDP for taiwan.
For Japan, it is concern on growth on internal japanese economy which got fuelled up by US factor.
US Fed has taken immediate emergency step by rate cut of 0.75% highest ever since 1984. US want to influx confidence in Global market to delete concerns of US economy and recession.
Indian market howevver saw lot of negative action. $160bn gone in 4 hours. In India, market had touched 21000, wherein lot of speculation has taken in place. Power stocks which had een great bull run were deeply hurt which corrected upto 70% in stocks.
Correction might be seen as good opportunity for buying stocks but here are few advice for you:
- Let the market stabilise, retail investors stay away and dont jump in to average in falling market
- Stay invested, what goes down will see its way up
- learn from this burn and invest in stocks based on fundamentals
- Don't run and invest your major part of portfolio in one sector
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