I am really surprised when people ask me ‘Are we in a bull run?’
Why ask – Of course we are in a bull run.
Collapse of a few economies in the world – in the middle east. The European crises – Portugal, Spain, Greece, UK…well not in that order, but you get the drift do you not? Then there is the rising price of crude….
However for the investor (disguised as a trader) every dip is a buying opportunity. Markets have not crashed. Why?
Well first it was Alan Greenspan who held the interest rates low. Really low. Then it is the turn of Helicopter Bernanke! He has his printing presses going, his QE, and his fantastic ability to convert a $ 3k oak tree to a chest of $ 3 million if not billion!
So Bernanke prints notes. India, China, Japan, South American countries – all are busy buying the dollar. Why do we have to buy? Simply because if we do not buy their bonds …well it is a long story is it not.
So let me guess what is happening. Ben is printing. To keep our currency from strengthening, we buy dollars, so we print rupees,…..and so on an so forth. Now all this cash sloshing around means all of us buy more stuff or keep it in banks – improving bank profitability :-).
How long will Ben print? Till Obama gets re-elected. Hmmm that is far away is it not?
One good thing however. When the Japanese crises and the Middle East crises happened, people did not go to the US as a ‘flight to safety’. Hmmm are people looking at other currencies? Should RBI be aware of what is happening.
You know my view on the regulators….correct?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.