Enough Blood in the Streets?

“Buy when there’s blood in the streets, even if the blood is your own.”

-Baron Rothschild 1871-

The Nifty fell over 200 points while the Rupee touched 62 against the US Dollar. All in one day. Therefore, we have to ask the question: has the selling been overdone?

It appears that there is more downside in the offing. While the markets may rally for a short period (or, may not), they look to be heading to lower levels.
Much to my dismay, the economic conditions of India are not very comfortable. Time Price writes in one of his letters:  As Adam Smith so wisely said two and half centuries ago, “There is a lot of ruin in every nation.” Rome took a couple of centuries to implode, although things moved more slowly in those days.

Governments can and often do destruct their economies, knowingly or unknowingly. Price charts for the Nifty are reflecting this reality, with a bearish head and shoulder giving a downside target of approx 4900.
Reader comments are welcome, since these comments are the best way to initiate new blog posts.