Ridham and Blues

Ridham Desai, MD of Morgan Stanley India, has been appearing on the financial networks lately talking about the Sensex correcting by 50% form their peak levels of 21000.  If that is true we still have another 30% to go…ouch.  Over the past 4 months he is one of the few guys setting realistic expectations for the equity markets and his candor is surprising since he’s from a bulge bracket investment bank.

However in the past two weeks more and more people are saying the same thing – “sell into the rally.”  Not good to hear but the reality is the financial markets are going through a painful re-rating and re-pricing exercise.

The bright side is Indian stocks are still doing well when compared to the US which is experiencing multi year lows for many stocks: GE, Countrywide, Fannie Mae, GM, etc…or complete destruction like Bear Sterns.

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