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I'm tired of reading these posts about the market correction.
Rant incoming. Everyday I see 4 or 5 posts such as... What happened to the nifty today? Why are FIIs selling? Why is my portfolio down? What am I doing wrong? When will the market rise again? I understand that there are a lot of newbies in the market, on this sub-reddit and even in life. Listen up. - Markets react to news. - Markets react to sentiment. - Markets react to macro economic factors. - Markets react to technicals & fundamentals. - Markets react to government policies. - Markets react to management changes. - Stock prices fundamentally are a function of supply and demand. There is a complex combination of factors and variables that are intertwined and at play everyday that impact stock prices, investor sentiment, and the trajectory of the entire market. People have over-simplified discourses about the markets like it's a baby. - Q: Why is the baby crying? - A: Well, because he shat his diaper today. To be honest, babies are quite complex as well. So bad example... but you get the point. - What happened to "Zomato—Tomato" today? No one freakin' knows! Some institutional trader sitting at his desk at the Toronto Teachers Pension Fund decides that they've hit their target of 60% gains for Zomato, and has gotten the green to unload the firms entire holding and exit the stock. And that could have triggered Motilal Oswal's stop losses, causing a sell off. Here in India we're sitting and thinking... Perhaps Zomato-Tomato is down today because Deepinder Goyal came late to the office. Learn to appreciate the complexity, uncertainty and the enigma of the markets. The "unknown perigrinations" are what make it thrilling and beautiful. If you don't like the ride, capital markets are probably not your cup of tea. Go find Ms. FD and marry her. There's no complexity, no surprises*. You get what you see — 7%. *(Not true in real life. With any Ms. there is complexity & surprises).4
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