It is a bit like India and Pakistan. While we in India, decided to pursue economic growth and opportunities, Pakistan went onto become a fundamentalist terrorist state.
I pray that there is peace and security all over the world. It is not nice, when such things happen, but why did Indian markets crash by over 600 points at a given point? Does North Korean bombing have such a great impact on India?
Directly there is no connection between the two. But as India becomes integrated with the global financial system, sentiment matters. Since quite a few months now, a lot of people on the inside had a feeling that the Indian markets had run up too much. Many time, markets simply look for triggers to rise or fall.
This was just a psychological trigger, it has not direct bearing on the Indian markets, but now gradually we will see a lot of the sentiment turning negative. Talks of doomsday will gradually return, people will suddenly tighten their purse strings, less people will eat out, people will shop for less clothes and suddenly once again the mindset will return to the time of the Crash of 2008. All assets classes, except gold and silver, will see major corrections. Stocks, real estate and currencies will all be bombed by these psychological warfare.
We can see a lot of arrogance disappearing, whenever an asset class sees people behaving arrogantly, it is a sign that the end is near. We need an end, to have a new beginning.
CWG Scam, 2G Scam, firing of ministers, a major scam involving media personalities and now finally North Korea. What people think is very powerful.
On Diwali, I had shared my views on welcoming Goddess Laxmi, I hope all of you did this by booking profits.
We are in for some interesting times.