A tale of two corrections

Just a week ago, we were comparing the two peaks the markets hit this year — in May and in December. It is not really surprising that we are now comparing two market corrections. After all, ‘What goes up, must come down’.

But there is a big difference between the recent correction and all the other previous market crashes during the present bull run beginning in early 2003. The market falls in May 2004, April 2005, October 2005 and in May this year all had global triggers, such as rising interest rates in the US or fears of global inflation.

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Additional Readings:

• ‘India to overtake China in growth in ’07’
• Momentum is back on track: Experts
• Market volatility here to stay: Prudential ICICI
• Banking stocks took sentimental hit due to CRR hike: Enam
• Correction warranted, but may not be sharp: UBS
• Be Investors, Not Traders
• How will finance flow for Mukesh Ambani’s giga plans?
• Brokers bullish on Fem Care Pharma, Unichem Lab, Union Bank
• Brokers are bullish on Nucleus Software, ICICI Bk, SpiceJet
• FIs, retail buyers bail out Cairn

Off-Topic Readings:

• ‘Gears of War’ game sales top 2 million
• The World’s Richest Indians
• Richest people you never heard of

Parting Thought:

• Buy stocks like you buy your groceries, not like you buy your perfume. – Warren Buffett