Friday, February 20, 2009

The 'Tom and Jerry' market

. . . a.k.a. the Bombay Stock Exchange (BSE)

One of the lasting moments of the famous kids cartoon 'Tom and Jerry' is when Tom is racing on a flat mountain top, and keeps running when he has already crossed the cliff. A little later he realizes that there is no land under his feet . . . and that is when he just drops like a 'rock' . . . straight down.

In 1991, when US invaded Kuwait, the price of oil went straight up. The markets the world over reacted strongly, going into a tailspin - except ONE market. And that was the market of the country probably the worst affected by the increase in oil prices - India. For quite a few months, it kept rising . . .  and then the BSE had its 'Tom' moment . . . it saw it had crossed the cliff a while back . . . and dropped like a rock . . . for the next 9 (Nine) years !!

Fast forward 2008-09. Things just have not changed. The BSE has seen corrections, but is tenaciously sticking near 9000 . . . while the cliff has already been crossed . . .

. . . lets see when the BSE gets its 'Tom' moment in this 'Tom and Jerry' episode . . .

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