Analysing Analysts!!

When I wrote on an impending crash 6 months back, not many were riding on the same boat. I sometimes find the biggest fools in “Analysts”. When the market was trading at never-before PE this January, no one prompted a sell. Business channels promptly expressed bullishness ahead and a great future for the financial sector. And la! The financial sector has given so much profit to investors than one could have imagined (pun intended). The gist is: Do you own homework. Don’t ignore fundamentals. And finally, don’t just go by what analysts say!

There’s no way companies can get out of a serious credit crisis just on the basis of a few rate cuts by Fed. It’s serious because the backbone of the US economy, the US financial sector is in ruins. I foresee the start of the next Bull Run in 3 years. However, current movements nowhere suggest bullishness. For Sensex, the next support is at 12600. However, I don’t expect this level to hold for a long time.