Friday, August 17, 2007

Bloodbath on Street

'This' is I think is unavoidable in today's circumstances meaning the way effect of the prime, sub-prime lending crisis in US housing industry is causing ripples across the world markets especially in the Asian Market, it can not be ignored.

'Financial services, investors, etc have been focusing more global, the FII (for us they are normally from US and European countries) investing into the developing countries like India, Malaysia, Taiwan, Japan etc. But any significant moment in their respective base countries make them to withdraw their money from these market to remain cover their position it with the gains obtained from the developing countries. Which obviously creates panic in the local investors in these developing countries.

Who is worst off ?
The small investor who is unable to understand the happening in the global markets or unable to understand the money making minds of the FII, etc.

But any small investor can be prudent enough if he is able to track the events around and little judgments about the market in general so that he can save himself from dragging in such situations.

Disclaimer - Such a vague article. I just tried to scrap something without much thought.

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