The last few weeks have been very tumultuous for everyone. The global market melt down has affected almost everyone in same way or the other. The collapse of major financial institutions has caused a worry in the market as to who is safe? It seems like all industries have been effected by this. Two days ago, Europe officially admitted that st it is under recession and so did Japan. US, we already know is under recession but they wont accept it. The global oil prices, have also fallen down. In India, we see the sensex has crashed, the rupee is struggling, construction industry is bust, and credit is not easily available in the market.
I think for long term investors this is the perfect time to invest. For people who have savings, this is the best time since there is a lot of panic and fear in the market. Also the prices for the housing market will come back to earth in the next few months and it will be a very good time to get a house. The basic principle of the market economy is supply and demand. Currently there is abundant supply and the demand is very few and this is going to bring down the prices, since the inventory has to be cleared. If this does not happen, there wont be new products launched.
I dont know what I am trying to say here and why I am dishing out all this “gyaan”. I guess in someways I am myself affected by this market crash. Some of my investments have lost 40% of their value and I am not sure if I will ever regain the lost value. Only time will tell. But I truly wish I had some money on hand because now is the best time to invest and reap profits for the future.
My thoughts...My story 