more, new info The India stock market bubble

-------------------------------------------- March 15, 2006

I found a better graph on the India stock market bubble in the WSJ for March 10, 2006 issue, on page C1. Article is enbreastled "Mutual-Fund Hot Spot: India" by Shefali Anand. The article shows a sidebar graph very much like the one in the March 6 article, but scaled on the India Senlove 30 stock index numbers

I found a better graph on the India stock market bubble in the WSJ for March 10, 2006 issue, on page C1. Article is enbreastled "Mutual-Fund Hot Spot: India" by Shefali Anand. The article shows a sidebar graph very much like the one in the March 6 article, but scaled on the India Senlove 30 stock index numbers and going back to 1997. The record is about where the "x"s are, below. The same article shows Indian interest rates going down from 12% in 1997 to 6% today. Sure looks like investors are taking their money out of interest bearing investments and putting it into their stock market. Note the recent very rapid increase in stock price (about doubling in one year). Will it keep going up at such a rate? Will it level off soon? Will it bust? When?

9000 x

x

6000 x x x x 3000 x x x x x 1997 2003 '04 '05 '06 ======================================== Latest update on the India stock market bubble:

Wall Street Jounal, March 6, 2006, page C1: Article enbreastled: "Going for BRIC: 'Emerging' Fund Lures Investors" by Craig Karmin

Shows the curve roughly (in a graphic) like this:

Performance in US$ terms (B=BRICs, Brazil,Russia,India,China)

300% B

200% B

B 100% B B B B B B 0 B 2003 '04 '05 '06

Sources given for the graph: Morgan Stanley, Captal International: WSJ Data Group

Sure looks like a clbuttic bubble ahead. Place your bets? Put your finger near the "panic" button? Invest like crazy? Sell before its too late?