India:Talking heads still saying buy; be very scared

Friday, October 24, 2008

We have real problems in the economy due to large investments made at peak prices in anticipation of higher prices. The premise of higher prices has collapsed. For example GMR is building the new Delhi International Airport; it estimates that fares per passenger would have to be increased by Rs 1,000 per passenger for the next 15 years to make up for the revenue shortfall from its planned 'Hospitality Zone'.

Every day there is more anecdotal news about realty companies paying exorbitant rates for cash. Investment capital coming into the country has dried up in the short term..many projects with MOU's are at risk...what is happening in markets is a force majeure event.

And to day, October 24 2008, I read this incredible piece in the middle of potential defaults in the realty sector:

4 reasons why you should buy while FIIs sell

When the popular press and talking heads are advocating very scared. Your pocket is about to be picked.
Update: 2:15pm Banks (11.95%) Realty (15.03%) Metals (-11.13%)

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