The Biggest of them all

Today Sensex posted 1140 points gain which is the biggest ever absolute point gain.The participation is quite low as anyone can expect after the carnage we have seen in the starting of the week . Next week will be critical for me as all of my companies will be announcing Q3 results as well as RBI,FED and ECB meetings are lined up..

This week we have seen the biggest ever fall and raise (absolute) for the Sensex which is close to 1400(8%)and 1100(6%).

While taking the large positions in equity markets we should be prepared for the worst . But is this the worst that can happen?

History says not .. The Dow Jones lost 22.6% in a single session on October 19,1987 and S&P 500 lost 20.4% on the same day.

I am not telling this to threaten anyone , i am an outright bull in Indian equity market but it doesn't mean we can be careless and expect to get away from the market.

This is the article written on Black Monday in 1987 . The reasons seems pretty much similar to what we have seen this week.

http://hnn.us/articles/895.html

So be cautious and Happy Investing.

RK