Thursday, May 07, 2009

Election results and markets

Every one seems to be of the opinion that India is going to have a fractured mandate in the elections and the market will correct 10-20% after the results are out. The percentage of the fall is to be determined by the group that comes to power with the maximum fall reserved for a combination of the Left and Mayawati!!
I wonder. In my experience markets rarely, if ever, oblige the popular opinion. Will the markets see a steep decline or will it witness a runaway rally? Only time will tell. For you and me, its best we reserve some cash to take care of opportunities that may come tomorrow.

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