Now it is clear that market is only driven by liquidity no fundamental plays its role. I agree with writer these all so called FIIS' bring their money and invest in equities all over world and buy any stock at any price and when they need money they sell any stock at any price whether making money or not doesnt matter. These people are not intelligent they just play money game nothing else. These all people collect money from their various investments lying in emerging markets and first clear their balancesheet and then after if money remain or they garner any new flow again start deploying money to emerging markets so be ready if they dire need of money you will get ant stock at any price there will 50% 70% sale and if they manage to make their account clear without selling more market will go up again..... So one thing is clear fundamental has no importance in atleast our market bcz our market is mainly driven by FIIS they are trend setters and we have no choice.
RE:SUB PRIME
by suby joseph on Feb 07, 2008 08:43 AM Permalink
i would disagree that there are no fundamentals involved. imagine that you have an opportunity to invest in india and say, Iraq. (i take the iraq example solely from a risk perspective). it's unlikely that you'd put a bucket load of money in iraq though logic says that iraq and it's economy is so beaten down that it can go nowhere but up from here in the long run. so lets say that you have 2% invested in iraq and the rest in india. today when ou have a downslide in india, you'll try to protect your 98% pie. iraq's returns may have been 100% but that's only 2% of your money. you'd sell that and try to save your shirt here. maybe when things settle down you'd go back to iraq with a wee bit. 50 years later you'd tell your grandkids that "if only i had invested 50% in iraq and let it lie there". but that's humna nature. and that's FUNDAMENTAL.
