Monday, March 21, 2011

Stockmarket & Calamities

Long after we are gone, Capital markets will still be around...alive and kicking

If you choose to change, you manage Providence
If Fate changes you, life is alittle more uncertain, not necessarily more miserable

Capitalism fuels stockmarket and materialism fuels consumption
Growth and the anticipation of better times spurs consumers demand whereas wars, calamities and social disorders cap the binge

Did the earthquake and tsunami cause the drop in stockmarket? Probably, but it is not a direct causation; it accelerate the corrective phase of an otherwise slow lengthy process

Events like 9/11, Chernobyl and Gulf wars are not unlike natural disasters

After the destruction and damages, come rebuilding, rehabilitation and growth. Corrections are necessary pixels that adjust for, and capture reality of life. . . since the dawn of mankind, Man has always been predictably irrational

It will take sometime to assess the extent of damages of recent time; the floods in Australia, earthquakes in New Zealand, Yunnan and Japan, social disorders in Middle-East ... Markets - insurance, equities, bonds, property - will adjust for/to the events

It is naive to think that Man will be rational and moderate in actions
History is filled with examples of great nations and civilizations rebooting and 'self-destruct' and starting with a new lease of life, not necessarily bad though

Boom, bust, recovery is as normal as Day & Night
Mis-alignment of economies, greed, suspicion, selfishness,  superior self-worthiness and 'to each his own'  prevented markets from functioning efficiently, sanely and in an orderly manner

Between now and the next couple of months, market will factor in above and adjust
For those who have exited the markets around November 2010 or about February 2011, well done and a well deserved 'rest'

For those who are licking their wounds, be well, alive and be prepared when the corrective phase ebbs

A Fool And His Money Will Soon Part

If luck is a market order, then being prepared is definitive

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