Sunday, May 24, 2009

Real or Surreal?

The way the stock markets have risen over the past two months belies the real strength of the economy, I feel.  Not that I was looking for a complete crash to sub 5k levels, but looking at the lost jobs statistics, the wealth/funds that were wiped out across different sectors, coupled with the beating the financial institutions took - this growth trend looks surreal to me.  

True, I am not a stock-market investor and don't know the intricacies of how the markets work.  However with so much at stake for everyone, as the assets of various companies - financial or otherwise - are at stake in the markets and decide the future of many more jobs, I am concerned.  Is it just the hype created by the yet-again-cooked-up numbers by the various companies and banks or the hope created by the Obama administration that's behind this rally?

If it's really real - then that's great.  But if it's surreal without any solid basis, then it's better we go through the proper correction and come back strong, not overnight but gradually on the strength of real performance.

As always, only time will tell!

Swasti!!

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