At present whole world is witnessing dreadful happenings in the financial system.
Demise of investors' confidence and abnormalities in the market fundamentals have led the mayhem in the global markets.
All over the world financial markets are crashing and heading towards to the bottoms.
Investors are bewildered over the status quo and finding difficulties to make investment strategy.
Foreign Institutional Investors (FIIs) are taking money out of the developing world markets and keeping safe in the lockers.
Hence surplus money is not finding correct place in the markets and as an upshot markets are facing crisis situation.
Market abnormalities have compelled investors to rethink over their investment strategy.
At present world is evidencing unusual phenomena viz.
all over the world fall of stock market indices along with the commodities markets, additional liquidity and coordinated rate cuts across the world by major central banks and volatility in safe heaven investment commodity gold.
Earlier whenever prices of key commodities like crude oil and base metals prices raises stock markets gets into the grip of bears.
But what we are seeing is exactly opposite.
E.
g.
crude oil price has fallen almost more than half i.
e.
prices has fallen from life time high $146 US to $64 US.
Base metals prices have also fallen considerably in last quarter.
But same tie markets have also pared 40% - 60% gains from their highs.
Earlier interest rate cut measures and liquidity addition had bolstered the financial markets and helped to change the sentiment of investors.
But bears of the markets left this fundamental also in the cache and continued their southward journey.
It was clearly noticed when major central banks across the world announced a coordinated rate cut and some also has injected addition liquidity in addition to rate cuts but all gone in vain.
Markets remained bearish and still not given any insinuation of reversal.
Gold as safe heaven, Analysts all over the world unanimously have been supporting and posting the bullish view on the bullion in the recent past because it is presumed that whenever stock markets does not perform well the Gold will become an alternate choice for the investors.
But the duel volatility in the safe heaven commodity kept investors skeptic and it also failed to attract bewildered investors.
The precious metal has moved $100 US up and down within a week and it has created negative impact in the mind of investors.
Hence the outflow of the funds from the markets, erratic behavior of market fundamentals and low investors' confidence has left the markets for free fall which is likely to continue at least till end of the last quarter of this financial year furthermore it may take one to two years to recoup from the current crisis.
Demise of investors' confidence and abnormalities in the market fundamentals have led the mayhem in the global markets.
All over the world financial markets are crashing and heading towards to the bottoms.
Investors are bewildered over the status quo and finding difficulties to make investment strategy.
Foreign Institutional Investors (FIIs) are taking money out of the developing world markets and keeping safe in the lockers.
Hence surplus money is not finding correct place in the markets and as an upshot markets are facing crisis situation.
Market abnormalities have compelled investors to rethink over their investment strategy.
At present world is evidencing unusual phenomena viz.
all over the world fall of stock market indices along with the commodities markets, additional liquidity and coordinated rate cuts across the world by major central banks and volatility in safe heaven investment commodity gold.
Earlier whenever prices of key commodities like crude oil and base metals prices raises stock markets gets into the grip of bears.
But what we are seeing is exactly opposite.
E.
g.
crude oil price has fallen almost more than half i.
e.
prices has fallen from life time high $146 US to $64 US.
Base metals prices have also fallen considerably in last quarter.
But same tie markets have also pared 40% - 60% gains from their highs.
Earlier interest rate cut measures and liquidity addition had bolstered the financial markets and helped to change the sentiment of investors.
But bears of the markets left this fundamental also in the cache and continued their southward journey.
It was clearly noticed when major central banks across the world announced a coordinated rate cut and some also has injected addition liquidity in addition to rate cuts but all gone in vain.
Markets remained bearish and still not given any insinuation of reversal.
Gold as safe heaven, Analysts all over the world unanimously have been supporting and posting the bullish view on the bullion in the recent past because it is presumed that whenever stock markets does not perform well the Gold will become an alternate choice for the investors.
But the duel volatility in the safe heaven commodity kept investors skeptic and it also failed to attract bewildered investors.
The precious metal has moved $100 US up and down within a week and it has created negative impact in the mind of investors.
Hence the outflow of the funds from the markets, erratic behavior of market fundamentals and low investors' confidence has left the markets for free fall which is likely to continue at least till end of the last quarter of this financial year furthermore it may take one to two years to recoup from the current crisis.