As the year 2009 draws to a close most investors would be relieved that the market treated us much more kindly than what it did in the previous year. In 2008, the Sensex lost over half its value, falling from levels of 20500 in January to around 9500 in December. Just as investors were losing hope, a recovery of sorts started and the valuations once again doubled from the previous December levels.
However, we shouldn’t get carried away. Sometime back we were celebrating 10000 then 12000, then 15000 then 18000 and so on. If our economy continues to grow the way it has and our corporate sector continues to perform, the Sensex has to rise.
Its pure cause and effect. So we wouldn’t be surprised if soon a time arrives when we look forward to a level of 25000 and beyond. However, no matter what stock market analysts and other storytellers will have you believe, no one can predict when this will happen. It could take a less than a year or even three – it’s the future and no one can predict the same with accuracy.
The basics of financial health
As the year 2009 draws to a close most investors would be relieved that the market treated us much more kindly than what it did in the previous year. In 2008, the Sensex lost over half its value, falling from levels of 20500 in January to around 9500 in December. Just as investors were losing hope, a recovery of sorts started and the valuations once again doubled from the previous December levels.
However, we shouldn’t get carried away. Sometime back we were celebrating 10000 then 12000, then 15000 then 18000 and so on. If our economy continues to grow the way it has and our corporate sector continues to perform, the Sensex has to rise.
Its pure cause and effect. So we wouldn’t be surprised if soon a time arrives when we look forward to a level of 25000 and beyond. However, no matter what stock market analysts and other storytellers will have you believe, no one can predict when this will happen. It could take a less than a year or even three – it’s the future and no one can predict the same with accuracy.