Last time I wrote the below article (barely a month ago!!), it looked like the financial markets were preparing for the worst melt-down in the Financial Markets.
As on Friday, stock markets have given fantastic returns over the 3 week period since September 22, 2011.
Brazil and Indian stock markets have returned 7.2% and 5.2% respectively in the last one week alone.
As in my previous article, even today no one has the ‘probable solution’. So why the elation in asset classes?
Case in point is though EU has cleared a Euro 400 Billion Fund, the total debt in the EU is 6,500 Billion. The EFSF is 6.15% of the total debt of the EU.
The important point to note is that stock markets have very short term memory. No news lasts forever. So don’t try to time to ‘bottom fish’ for good stocks.
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