GREED AND FEAR IN EQUITY MARKETS

As equity markets across the globe are melting down as fast as glaciers due to global warming, both the fundamental analysts and the high profile technical analysts have disappeared from the market. Thank God! we are not hearing any expert advice in CNBC on the investments and SENSEX reaching 25 K or 30K. Valuation experts are clueless and the people who were recommending buying at 20000 levels are not seen anymore.

In these type of situation, people should realise that it is only GREED and FEAR among human beings that is running the market sentiment. Fearfull people sell on fears of prices going down and Greedy people buy on greed of making money on the same stock. The seasoned investors like Buffet is the firm believer in the behavioral aspect of the markets. Yesterday, in a column published in the New York Times, he said that "...I've been buying American stocks. This is my personal account I'm talking about, in which I previously owned nothing but United States government bonds," said Chief Executive of Berkshire Hathaway Buffett. "A simple rule dictates my buying: be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors," he pointed out.

SHOULD WE ALSO LOOK FOR INVESTMENT AT THESE LEVELS AS NOW FEAR SEEMS TO BE STRETCHING TOO FAR?

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