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Narasimhan's review
Investment Sector: Emerging Markets Submitted by Narasimhan 
, Owner
at Krish Systems
2 months ago Tags: Stock markets bear phase crude shock slump in prices real estate and stock losses Add Tag |
This may not be a great news but a reconfirmation that every analyst will be seeking.
In a recent poll of 120 equity analysts and stratagists from New York to Tokyo it was found that onlly Toronto and Taipei exchanges posted gains and all other stock markets lost during 2008. Nine out of the thirten indices showed a decline. Further this poll was taken at a time when the US unemployment numbers have risen to their 22 year highs.
Most the analysts have attributed the fall in stock values to the rising crude oil prices and the steady rise in the write offs by US banks on their exposure to realty sector. When stocks slide the bankers need to look at their exposure to the stock holders and bring in measures that willl help them t o reduce ther exposures. What is worrying is the pessimism that followed when Lehman brothers declared forecasts showing huge second quarter loss. It is notable that slide in markets have not been stemmed in by the continuous cuts in rate announced by Federal Reserve. One view is that for the present investors need to stay away from stock market till oil prices stabiilze. However if one takes look at the crude prices being common to every economy not investing stocks may not sound as nice strategy as most markets are likely to rebound keeping with rise and fall of stock markets. Investors may therefore need to have long pockets and keep patience till markets calm down and start rising again.
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