Wednesday, October 27, 2010

Capital Market

Is this a bubble in DSE like the world has seen time and again? is it going to be crushed soon? is there any way to save investors from the upcmoing crash?

I think we do not need to do anything to save investors from the 'upcoming' crash. It is a game of greed and fear. Those who are greedy will be punished and get their 'lesson'. That 'lesson' is invalueable for investors; not only for investors in Bangladesh market but also for investors around the world, across the time. In Bangladesh some people has got the 'lesson' in 1996. Those who have not quit after having the lesson, must have learned the stock business by now. I am sure they are making tons of money from this bull market.

May be I am sounding rude. But that is the rule of the game. A crash is a necessary thing for the development of the market. It is necessary for learning. When people make money from a rumour or from the tips of his broker, they are just happy. they dont analyze why they have been able to make this much money. They start analyzing when they actually lose it. They start to find out the reasons for loosing money. And that is when the learning process begins. And who does not know how necessary it is to have 'the investors knowledge' for any market. Every country, every capital market needs to renew this knowledge after a while. That is why crash was there since the inception of capital market. We can try to deffer that learning by different measures. But ultimately it will come. and it will come in a harder way. So why deffering the opportunity of learning!

1 comment:

Ishtiaque said...

Nice point of view. You should write more!