Stock Markets Exposed

Why US Stock Market is collapsing, how come it is affecting Indian markets anybody knows?

Public Comments

1. I would not say the US Stock Market is collapsing. It is definitely in a down cycle, and could get worse. All the worlds economies are tied to eachother in one aspect or another. The US economy is the largest in the world, so when it has problems, a ripple effect goest through almost every other economy.
2. The US market has been stronger in the past 2 weeks. I would say the bottom is in. There will be more volatility in the weeks ahead, but this the time to be in the market even though you may not see the next leg up until 2009.
3. The US buys many goods and services from India and other countries that buy from India. When the US can't buy things, everyone suffers because the US is pretty much the most major, stable economy in the world (EU has become a close competitor as of late). It affects everyone globally. US Market down means everyone has less money to spend.
4. us market is collapsing because of negetive alarming protocole that means the procedures adopted by them to recover are burning thier own hands , as we know the consumption rate is highest in usa but resources reqd fetch these pepole are getting scarce also sub prime crisis is also geting hot to increace the problems of us , answer for u r second answer is the highest investment are by us in india more than 65% in stock and more than 70% in service industry so if us is feeling cold our market has to affect
5. Have you been following any of the economic indicators? Most just keep getting worse and worse. How can you ignore the raw data and say, "oh we've hit a bottom, everything will be just fine". I wouldn't buy stocks right now if my life depended on it.
6. America sneezes the rest of the world catches a cold
7. every country is linked to performance of other countries coz they all trade with each other. india exports a lot to USA and if demand goes down in US due to shortage of money supply, depreciation of dollar or any other reason, it is bound to affect india or any other country. also, most of the investments in india is by the phoren guys/institutions who have got their money stuck in usa markets as of now and therefore have less flexibility to juggle money here and there. all major markets were anyway hyped enough to a PE of 24-25 which is huge considering it is tough to maintain this kind of growth by companies and also a call on 24 times annual earning becomes too risky. so a correction has happened with valuations now at 16-17 times PE which indians are more comfortable with. like it happens when the markets are booming that people become aggressive and overvalue projects, similarly in a downfall, they become over-defensive and under value projects and this is the prime reason markets fall faster (which has happened now) and is a big time opportunity to invest in select stocks that have good future potential and reap multi-times gains in future. but be careful where to invest. not all companies are as rosy as they are shown to be. REMEMBER, ALL THAT GLITTERS IS NOT GOLD!
8. the goods and services imported from India to the US will decrease as us capital and consumer spending decreases also in recent years the cost of goods and services have increased and this combined effect is anticipated i would focus on infastructure specific stocks, meaning looking at companies that dont make the majority of revenues from overseas
9. Firstly because we are all in bed together now, so if the biggest economy struggles, so will all the others. Secondly because we have you guys tied up in all the same sort of derivatives that crashed our own economy, so when ours starts to backfire, so will yours, since you bought the same thing off us. Thirdly, the US as the world's super power will probably try and defend its position if it gets into trouble. You can gaurantee we will try and defeat/sabotage any major international market that gets too close to us. Through many means, not the least of which is selling you more crazy derivatives