Markets around the world are under heavy selling pressure. The Dow falls through the 10k mark. Two of the BRIC countries, Russia and Brazil have seen trading halts today, when stock prices fell 10% or more.
Bloomberg reports: The credit crisis that pushed money- market rates to records last week will deepen a U.S. recession and extend it into next year, according to a survey by the National Association for Business Economics.
Many of us expected more pain in this bear market. That pain has suddenly come upon us. Below 3800, I had suggested that the Nifty may go into a free fall. There is no support before 2000. I do not suggest that the Nifty will reach 2000. But, the absence of support means there is no technical level to follow. The Nifty will stop wherever it wants to. (All of this is old hat, because I have written about this many times earlier. This is a repeat). Wait patiently for this decline to stop. There is no hurry to buy. Do not catch falling knives.
Everbody to blame but me
Mr Richard Fuld, CEO of Lehman brothers, said the investment bank was felled by rumors, out-of-date rules and slow reactions by regulators that fueled a ``storm of fear'' on Wall Street. Mr Fuld was giving testimony to a U.S. House of representatives committee. The committee chairman said that ``Mr. Fuld takes no responsibility for the collapse of Lehman.''
I am not surprised. Brokers and Fund managers who call themselves "Investment Bankers" believe that they are one step above God. They have managed to almost destroy the USA and Europe - an achievement not many can claim.
For us, the moral of the story is: do your own thing. Listen to everyone but take your own decisions.