Posted by: Pradeep | October 17, 2008

Who says investments are not liquid?

The ongoing slaught on investments worldwide has only one story to substantiate that investments are always liquid…that is why they are flowing out so fast out of investor pockets now with this financial crises hole.

Indian BSE sensex today slipped below psychological benchmark of 10,000 taking with it billions of dollars of hard earned money of retail investors. FIIs who ripped the profits with growing Indian market are first to look elsewhere and exit the market to cover their open positions in other markets particularly USA.

Sometime back I was pondering over the issue of market meltdown with my friends in USA, UAE and India and I only one opinion that bottom it still long way. Being invested in this market and talking that…quite contractory on my part. But the facts can’t be denied; I am long term investor and don’t bother about 2/3 yrs of recession or upterm.

Recently I was reviewing precious metal market and observed that Gold is over valued when it is compared with Platinum. As of now both metals are trading very close to each other. If Gold is not over valued then definately Platinum is under valued. I would refrain myself from investing in this market at the moment.

Crude futures have given jitters to all oil traders who deal in stocking policies also. Oil has touched close to USD 68/bl on spot market wiping out all gains of last 13-14 months. It proves one theory that oil was speculated a lot because as yet demand has not slowed to the extent the commodity has lost its value. I can say that it is good time ahead for consumers, industry but governments have to be prudent in making policies and overseeing the implementation of them. I don’t think infusing more borrowings in market can change the course of downfall now.

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