Hi
Recently an article came in the economic times(28th Jan).The article was conveying to the reader that there is no difference between a stock market and a horse race.I think why horse race i think we can compare it to pure simple gambling also.A game of chance!!
I wonder what makes people make such resemblances , such comparisons. Why ?
Is it because they loose the money in the recent crash and money tons of money!!
But what is reason for that loss? Do we ever try to discover ? Did they ever try to find what was wrong in them that they lost ? No!! Since we have other important works to do than this!!Like asking the BSE people to shift a bull sculpture from one place to another as if being facing the entrance will make it run into the market and change our fortunes overnight.
I think we all remember the simple adages.1)The quicker the rise the faster the decline.2)No one keeps on moving on higher altitude..There is nothing like perpetual upturn or downturn..the gist of it being the golden words of Newton 3rd law"EVERY ACTION HAS AN EQUAL AND OPPOSITE REACTION"
The things i mentioned above are used so often in our d2d bantering that they are a cliche.Even a child of 1st class knows it by heart but what does it imply very few understand and follow.
Just trying to apply such parameters to the recent happenings in last 4 years.We rose like a mad bull and when every small barrier was broken we grew more sceptical , more suspicious of the market.Then there were people who would say that everything is good but they also warned that yes we will fall and fall big time.Only we kept on missing the point.
And then when we started to be a bit complacent and felt that things are fine no more corrections we will scale new highs , we had hundereds of theories on decoupling ,strong growth , recession which all made one point we are not vulnerable; we are stuck by a bolt of lightening and we lost all our airs.
Now the real game begins find the scape goat who must die since others have to live.It must be slaughtered since the government has to work.And to add to it our venerable politicians give comments that stop futures trading , stop this , stop that !!!
May be these laws might not be true in overall market but won't our commonsense help us stave off such miseries.
But this is what an ideal world should do but this world is far from ideal ; it is real driven real laws...Laws of greed , lust , power ...
There fore any learning of any sort is far from coming....So till then we will continue play the same game and make same mistakes only the players might change...That i hope does happen...
Till then make money by fooling the fools!!!!
But never blame anyone since when u got rich u too made someone poorer..
After all it is a horse race !!