Anil Singhvi decodes Bull Market, says do not worry, fall in the US market caused by profit-booking
Zee Business Managing Editor Anil Singhvi said don’t be afraid of the fall registered by the US market. The Market Guru said be careful and do not to run away. Anil Singhvi said consider this as profit booking. He added that bull markets can see 3-5% corrections sometimes.
Zee Business Managing Editor Anil Singhvi said don’t be afraid of the fall registered by the US market. The Market Guru said be careful and do not to run away. Anil Singhvi said consider this as profit booking. He added that bull markets can see 3-5% corrections sometimes.
Anil Singhvi said that participants should not decide if the news is good or bad looking merely at Dow Jones. Market and news are two different things to be monitored individually. Singhvi highlights that Bull markets mostly start with low interest rates when money starts coming and a Bull market starts. After that, fundamentals start improving slowly and the Bull market continues further as numbers kick in reflecting the strong fundamentals. After that there is confirmation of the Bull Market.
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Singhvi highlighted that the US markets started doing well when the interest rates were near Zero, sentiment were negative due to the corona situation. The US Economy started doing well from Feb – March 2020. Money started flowing in the US Economy during that time followed by strong fundamentals and eventually leading to economic recovery. The bull market ends when interest rates reach their peak, inflation is at the top and there are liquidity issues in the system.
Singhvi said interest rates play an extremely important role in the journey of the Bull Market from bottom to top. At lower interest rates, the market moves up and Bulls take over while at higher interest rates, markets move down and Bears take charge.
अमेरिकी बाजार की गिरावट से डरना नहीं है...
सावधान रहें, बाजार से भागे नहीं...
अनिल सिंघवी- इस गिरावट को सिर्फ मुनाफावसूली मानें, बुल मार्केट में कभी भी आ सकता है 3-5% का करेक्शन#EditorsTake #USMarket #DowJones #Nasdaq @AnilSinghvi_ pic.twitter.com/fddjVZIpCm
— Zee Business (@ZeeBusiness) February 26, 2021
The fall in yesterday’s market was due to the indication for the first time that the interest rates are rising.
Singhvi said that if interest rates and inflation are low then the growth will also be low while when interest rates are rising and inflation is high, growth will be visible in the economy. Market participants should try to understand the market behaviour from long term rather than minute by minute.
Singhvi highlighted that there is strong liquidity flow in the US markets and money is being parked in all asset classes like Equities, Metals and Bitcoin. Market participants should look at yesterday’s fall in the US markets as profit booking by the participants. A fall by 3% to 5% is normal in Bull markets. Investors should be ready for such kind of correction and it is extremely difficult to time such kinds of corrections in the Bull market. Markets will form a strong base and the bull market will continue from thereon says Singhvi.
Singhvi said market participants should be careful and cautious but not leave the markets and disappear. He said there is a possibility that this fall may continue as it can be a running correction in a Bull market. Market participants should not panic and worry about yesterday’s fall in the US markets. Hedging would be an appropriate strategy to protect from down side in the Bull market says Singhvi.
11:39 AM IST