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.