Sunday, June 15, 2008

"Not so much of crunch, really"

The global economy clearly slowing down, inflation inching up, oil prices showing no signs of a decline – normally investors should be keeping away, or so you thought.

You can’t be more wrong. India Inc witnessed the announcement of USD 640 million worth of PE deals in May this year, about six times over April deal volume and 12x May, 2007 record. The Jan-May 08 figure is $6.39 billion into India alone as against 159 deals worth $ 4.97 billion during same period in 2007 reports Grant Thornton.

This is the type of news that could pull in a lot of fence sitters – investors that got cash but not sure when to enter. “So, come on guys, jump right in. Let’s have some piece of action, have another ride. Last six months were boring.” RBI seem to want it too. It's throwing open the gates. See here.
Don’t believe me? Here is a wave theory or is that Five?

So investors, the big rich guys are back. Soon stock prices will get back up. Go get some of those momentum jacks that look like value now, in case if you had the good sense to stay on cash :-)

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