Investments and Markets, two of the hot topics of the world for the last 12 months. People across the world, whether involved in the Financial markets or not, had an opinion to share and an advice for free. With the collapsing stock markets and the economy, many of them felt let down. Some of them blamed it on the greedy bankers, some of them on their federal banks and some of them clueless on whom to blame. They all felt let down.
Sitting in my Penthouse Studio in Riyadh, the capital of Saudi Arabia, I began to wonder whether the markets determine the mood of the people or the markets reflect the moods of the people? Sentiments were running very low. With bout of bad news coming out everyday, people across the board wore a sorrowful face. Their faces expressed a feeling of having lost one of their dear ones. The whole investment community had to face the reality; the erosion of their wealth. Few even committed suicides, unable to bear the pressures built by their leveraged positions. The situation was very scary.
On the back of bailouts and stimulus packages by Governments across the world, the World Financial System avoided the demise. It is in a much better shape now and as always, the Investment community have shown their mettle and have started getting back into the Markets.
I keep hearing from many Investment Bankers that many Investors including fund managers are still waiting in the sidelines waiting to get into the market. This probably explains as to why the markets are steadily going up over the past several weeks. The fact that bad news were not that bad, also helped the markets. I think the investors have managed to put a floor to the markets and feel that the worst is behind them.
I strongly beleive that each time, the markets like to take a breather now, the investors waiting in the sidelines, assess will this as an opportunity and start buying. Many of the Investors are unable to digest the fact that they were left out in the recent northward march of the stock markets. Those who compare their performance with any of the indexes have been left behind as the Indexes have made a nice move up while these Investors were staying away in the sidelines. They have a catchup game to play and in the short-term I feel that a major correction is very unlikely to happen, though some of the valuations are high now.
Sitting in my Penthouse Studio in Riyadh, the capital of Saudi Arabia, I began to wonder whether the markets determine the mood of the people or the markets reflect the moods of the people? Sentiments were running very low. With bout of bad news coming out everyday, people across the board wore a sorrowful face. Their faces expressed a feeling of having lost one of their dear ones. The whole investment community had to face the reality; the erosion of their wealth. Few even committed suicides, unable to bear the pressures built by their leveraged positions. The situation was very scary.
On the back of bailouts and stimulus packages by Governments across the world, the World Financial System avoided the demise. It is in a much better shape now and as always, the Investment community have shown their mettle and have started getting back into the Markets.
I keep hearing from many Investment Bankers that many Investors including fund managers are still waiting in the sidelines waiting to get into the market. This probably explains as to why the markets are steadily going up over the past several weeks. The fact that bad news were not that bad, also helped the markets. I think the investors have managed to put a floor to the markets and feel that the worst is behind them.
I strongly beleive that each time, the markets like to take a breather now, the investors waiting in the sidelines, assess will this as an opportunity and start buying. Many of the Investors are unable to digest the fact that they were left out in the recent northward march of the stock markets. Those who compare their performance with any of the indexes have been left behind as the Indexes have made a nice move up while these Investors were staying away in the sidelines. They have a catchup game to play and in the short-term I feel that a major correction is very unlikely to happen, though some of the valuations are high now.
Once the economic datas start showing signs of recovery and growth, the markets would be more healthier. The wealth-making community is eagerly waiting for this day. Come and join the party.
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