Today,we expect a cautious opening due to lack of clear trend in the global markets. The market may not make decisive move upwards over the next few days. The bulls have not been tested really, which leaves them vulnerable to some pull-back. A big crash is not an immediate fear; so don’t panic. Stock specific activity will continue to hog the limelight.
Complacency can be fatal especially for the bulls who seem to be in some kind of safety zone for a while. One year since the implosion of Lehman Brothers, things appear to be getting better. But, any casualness or haste could renew fears of a double-dip recession. Great Depression was prolonged due to premature monetary tightening. Hopefully, governments and central banks would have learnt well from history.
The G20 Summit later this month aims to take stock of the situation. There is a clamour for stringent financial regulations to avoid a repeat of the meltdown. Whether that materialises or not remains to be seen. Some are also calling for ending the bonus binge for top bankers to curb their gambling impulses.
