Markets for everyone

I still get to hear anecdotes from my mom about share markets ruining so many homes during her times in Bombay. No matter what I say about the state of current affairs and the sea change that we have gone through since the days of shouting for bids, she is strong about her views after having seen the pain. In a way she is right.

No matter how modernised the system gets, there will be loopholes and there will be enough ppl wanting to use them.

The system is as good as the general culture prevailing. For, its the culture which will set the system, and its the culture which is the soul, breathing life into the system.




For quite sometime now, we have seen a wave of new comers taking an active position and following the markets as actively as following Nicole Kidman's love life. I am one of them.
This situation is just like the scene in any of the countries affected by the World Wars. There are two sets of ppl, one who have seen it and the other who were born after it. Just as there is a huge difference in practically everything these two sets do, think and hold dear to, we will soon have two sets of ppl in the Indian stock mkts too. Those who have seen the sub 3000 levels around 2003 and before and the ones who came in after the 'bull' market supposedly started. One might say you cant exactly classify based on this criteria , but there are many reasons for this.

1. The huge number of ppl who have latched on to equities as a source of money (investment or otherwise) since ppl started dumping "the dot com bubble" memory.
2. The rise of the great Indian middle class (am sure many would not call it the great Indian, nevertheless..)
3. The hype attached to the stock markets by media. (This far exceeds the impact of other reasons)
4. Speed and reach of information through various means

Whatever the reason , whatever the classification and whatever the advice. One thing is for sure, greed and fear are two of the most important entities in any market.