* x * x Stock market fall, worldwide * x * x * . Review on Theindianstocks

Did you ever met with a person who pays 3,650% interest per year and still run a shop in profit?  I know own, who buy AED90/- in the morning and give back AED100/- in the evening and save money for his daily expenses.   I have also know people who have taken the drastic step like committing suicide after taking loan for mere 10 or 15 percent. Investment is an art and eExecuting the risk and making profit is a skill.

I personally not invested in stocks and no worries as on today, on the news that stocks across the globe, from Sydney to Tokyo to Hon Kong to Mumbai to Dubai fall by 5 to 10 percent or more.   (and breaking News, US too lost heavily on the opening bell, more than 400 points, i.e. 5% despite 0.75% interest cut, but now recovering) (Most likely Sensex will witness another down sink unless a change in NASDAQ is witnessed).  Rs 6 lakh crores lose in a days trading…hmmm…surely it is too much.

I wanted to write on this fall of stocks and related issues and searched for a topic where I met with https://theindianstocks.com.   The Indian stock. Com looks authentic and informative.  I am sure people are into investing will find it very useful.  There is a 100% recco to the site and I can see the site is quite informative.  So, for one who look for a site to search and know about Indian stocks and stock market in general, this is a good site and recommend it for that purpose.

My write up however is mainly to concentrate the worries associated with the stock fall.

Just check this link from economic times (got it from the web site) https://economictimes.indiatimes.com/Small_investors_feel_the_pinch_of_market_fa
ll/rssarticleshow/2721240.cms

There are small investors who invested and expecting a return from the mutual funds and various policy based investments for the safety security and well being are now feel cheated.

I read news that few brokers demonstrated before the BSE against the finance minister.   I can only pity such shows which were absent when the stocks rally to heights like 21000.  I personally feel that finance ministry should not have issued statements to console and ask people to hold to stocks even (as did today and the other day).   If the stocks rose based on the market strength, let is fall with market weakness.  Tomorrow, when the stocks are going to sink, will the minister pay back for all those who have hold to their shares?

What is the reason for the fall of stocks???

The major reason cited for the fall is fear.   i.e. the fear that the economic slow down in America will lead to a world wide recession.   In the first place I would suggest that instead of panicking the think tanks should have taken it as an opportunity.  If my neighbour have financial problem, why should I cut my budget.  The people who should worry first is Americans but they are the least worried.  But let us ask the question…'What lead America to this situation'.  The American invasion in Iraq costed America dearly.   The first and necessary step to cover this situation is the immediate withdrawal of American troops from Iraq.  I read somewhere that to Keep the military operation in Iraq, America need to spend nearly $1 billion per day.   We have to read this along with the fact that they are in Iraq for years now and now compare these figures with the annual Indian budget which is yet to touch $25 Billion.    When India had to do a small operation in Kargil, within months our economy was shaken.

Economists were expecting a recession, based on various economic date but they were also expecting some concrete action from George Bush to recover the economy.  The 100 odd billion package in tax deductions to recover the economic slowdown was far below than the expected initiative.  Here I am yet to understand their cutting of interest rates where when the inflation is higher and they cut the interest rates will surely keep away the foreign investors.  The higher interest will always help the ordinary people to earn more money.  However, for those who has to meet credit card bills every month end it is a curse.   It looks like majority the Americans are in the later category.  Only then, the rate cut is justified at least to an extent.

This is the real fear which is leading to the stock fall.  The world now fear that the less demand in US will affect the production in Europe, Japan, China and even in India and it may lead to less consumption and less transport, reducing the oil prices.

For one who invests in stocks, once we pay more than the real value of the stock, we are taking a gambling.   The problem is that we the common man don't know what a share of Reliance or Mercedes worth.  I don't know for sure.   However we have to remember that we are only eligible for that share, not for the economic well being of America or Europe.

Investing is important, but wise investing is better.  Risk taking is good and must, but gambling is nor good or must.  There is risk taking and gambling in stock business.    We have to understand the difference.  If we don't know that difference, one has to depend on luck and time, which can go both ways.