Sit back, relax and wait for the spring
The rise in stock markets world over must be baffling the investors as well analysts alike. At this time - when the world is staring at a high probability of deepest ever recession in global growth, disproportionate demand destruction; severe financial stress for households, prolonged disruption in global trade; colossal debt defaults; unsustainable monetary expansion; and total collapse in consumer sentiments - rise in prices of high risk asset like equity is definitely perplexing. It is however neither unprecedented nor surprising to me. During July 2007 to December 2007, Nifty had recorded its highest ever levels, despite the sword of sub-prime collapse hanging on its head. What we are witnessing is a similar phenomenon, commonly known as distribution pattern in technical analysis parlance. As an investor, I need to persistently remind myself the following and many other similar things: Many tenants are refusin...