A career threatening problem.

Nothing sows the seeds of doubt in the minds of money managers quite like a bear market rally. Thoughts like, “Is the bottom in?”, and “Am I missing a once in a generation buying opportunity at the beginning of a great new bull market?” cause institutional investors to reach for the antacid tablets. For many of them, losing money in a bear market is no sin, as long as everyone else is taking on water, too. But missing out on the gains of a bull market is a career-threatening problem. As such, large investors are all competing to identify the start of a bull market. They also rush in to buy just to ensure that they are not left out. If, the rally turns out to be a false awn, that’s okay since everyone else will be in the same boat.

This means sharp sudden upswings when funds rush in to buy, fearing they will miss out on the ‘real thing’. Such surges seldom last long, since there is no buying left to do once the funds have taken some positions.

The trader should understand the trend. This takes practice and effort. if the trend is up, we want to buy on dips, like yesterday.

Can the Swiss Bank money make a difference to the Indian Economy? It would seem so. Have a look at It is our money in Swiss Banks