Painful first quarter for world financial markets
This quarter started with substantial concern concerning real estate bubble bust followed by subprime crises which all are talking US economic climate towards a recession. This will be long or short economic downturn only time will inform yet effect is getting visible in low customer self-confidence and also same store sales reports which are falling monthly. United States federal government as well as Federal Get is attempting their ideal to draw economic situation out of this recession by offering tax obligation concessions as well as offering money to banks at really reduced and deferred interest terms. Bear Stearns was biggest causality of this quarter whose supply fell from $80 to $3 in issue of 5 days due to its losses in home mortgage backed protections which obtained significantly decreased the value of because of subprime crisis. Above all occasions caused among the worst quarters for international stock markets. Dow dropped by 20% off its historic high of 14280 to about 11500 as well as took world markets with it on rollercoaster flight. Worst performing field was banking which lost regarding 42% evaluations. Also Nifty Junior and Nifty Midcap humbled by 45% and also 43%. Petroleum rates elevate also added its part in downturn concern in globe markets. Something positive is been seen from auto sales report that little auto sales are quickly enhancing all many thanks to their exceptional gas effectiveness as $3 a gallon is developing large hole in eaches pocket. Food grains like wheat, Rice and pulses are revealing extremely bullish fad in globe product markets. In India because of less than favorable monsoon and overzealous exports of rice have created shortfall in tactical grain books, which caused export restriction of rice and also pulses. Precious metals like silver and gold has actually revealed very wild swing this quarter because of continues loss in securities market and United States Buck value. Rare-earth elements especially gold is favored financial investment to which individuals consider in events of financial turbulence as we have actually observed this quarter. Gold stared this quarter with $845 per ounce as well as reached its top of 1030. In a similar way silver began this quarter at $14. 80 per ounce and peaked at $21. 30 and also currently back to $16 per ounce. To sum up the analysis we anticipate that damage done to international economic situation particularly securities market in last quarter will certainly keep revealing its effects for two to three quarters as well as markets might see heavy volatility and wild swings. It is prudent partially of investors and also capitalists not to be over zealous in either bull or bear side of markets and keep a neutral view to trade as necessary.