Sunday, October 17, 2010

De'ja' Vu , The Great 2008 Recession

Summer of 2008 was simply unforgettable. Recession was tough on us as the students as it was on the people who were employed in various corporations. I can never forget the time, maybe that was a good thing which keeps me grounded all the time.

The recent times has so many similarities with the recessionary times. It simply feels like a de'ja' Vu. Various similarities are:

1.  Sensex nearing all time High:  The levels are just a ting lower than the previous high which followed a crash.

2. A Big IPO lined up in the form of COAL India , similar to Reliance Power IPO which turned disaster in the end.

3. Precious Commodities at all time High: The Gold and Silver almost touching all times high.

4. Inflation nearing Double Digits

5. Strong Rs and weak dollar : The rupee has touched almost 44 to a dollar

6. US trade deficit: Widening to $ 40 Billion/ month which is scary .

7. Excited  Retail Investers : Participation in recent IPOs have been really out of ordinary .

8. HR hiring anyone with a degree like there is no tomorrow.

9. Real State prices doubling every 6 months . 

I hope it doesn't goes the way it went last time. The fundamentals looks much better this time . Lets see how it goes, I am optimistic this time.


Gaurav said...

Yeah, it cant be that early. Typical cycle is 8 to 10 years.

Ankit said...

The cycle times is reducing due to globalization . The integration of economies increases the trouble.

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