MARKET GRAPHS

Sunday, November 15, 2009

All stock market investors dread political instability, war, civil strife, political unrest, insurgency or any other political development that might have a effect on the business environment. These real and imaginary fears give rise to confusion because most of the investors have not developed standardized responses for dealing with political uncertainties. When confronted with a grave crisis of a political nature, most investors tend to panic and either sell too soon, or hold back from exploiting the great buying opportunity created by such a crisis.

However the point to note is that against this dismal record of political and economical problems, and despite strong opposition from entrenched vested interests. India succeeded in pushing through a bold economic reforms program that set the economy back on the path of a strong recovery. Also despite this disturbed and unnerving political scenario of the last ten years, the average Indian investor succeeded in multiplying his capital by 50 times.