Tuesday, November 4, 2008

Stock Markets Surge Worldwide on Obama Victory

Stock Markets are posting good gains on Nov 5, extending previous gains in the hope that newly elected US president Barack Obama will turn things around.

While US Indexes were up 3 to 4 % in anticipation of this news (ostensibly, as reported by mainstream media), the Asian Markets ranging from Japan to India opened higher by 1.5% to 5.75%.

The mainstream media reports this as a "reaction" to the news and hope from investors that year-end-rally in markets will take place. However, I think this is yet another Suckers' Rally which is more an example of irrational exuberance. My views regarding these kind of rallies can be found in detail in "Changing Trends In Markets".

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