I wish a very Happy & Prosperous Diwali to all my readers & friends…

The festival of Diwali symbolizes winning of good over the bad… Win of God over the Devil… Prosperity & progress everywhere. We Indians (everywhere in the world) celebrate this festival by lighting lot of diyas all across our homes. It is said that diyas (i.e. fire) entices the Goddess Lakshmi (the Goddess of Money).

I am fully aware of the trauma most of the investers, including me, are going through given the sudden and fast downslide of the Stock Markets.
The way Indian (& global as well) equity markets are behaving for the past few months & the kind of attention its getting from the media, forces us to believe that, the world is coming to end… In the History of world economy & stock markets, there have been many occasions where one would have thought that the world is coming to an end, but in reality it doesn’t happen that way.

Stock Market has an uncanny neck of surprising everyone (on both the sides… UP and DOWN) and probably what we are going through right now is the other side of the extreme, which can’t sustain for too long at this pace. (though can have near term pain, due to the magnitude of the problem and the wealth destruction it has caused in the past 10 months). Markets never trades at fair value, there are always excesses on both sides. Markets always tends to overshoot or remains undervalued with respect to fair value.

I strongly believe that currently we are trading below fair value, once there is stability in the markets, they will change in future. Amen!