Economy Meltdown and Effect On Commoners

Meltdown? Or financial adjustment? That's what happens when we print money out of thin air and extend credit to those who can't pay it back.

We deserve it!

Uncontrolled borrowing and spending, property over valued, credit cards used as a form of cash.

Thirty years of this and "we" expect for an overnight fix. I don't think so!

Accepting the recession trend is the easiest way to rationalize the pay cuts. The liquidity crunch and low capital is the reason for stalling new expansions or diversifications in various fields. People believe in spending less and also lower their expenses. For a company maintaining the break even point is becoming difficult and hence they have resorted to retrenchment. Another trend that is seen is pay cuts and depriving the benefit of bonus.

For a commoner recession comes with low salaries. With ad hoc family expenses, fixed spending like school fees, commuting and other vital needs the commoner is surely facing a problem. Curtailing expenditure would mean to alter the lifestyle of the family. This is a slow process but again not a difficult one. Fixed savings need to be adhered too as the future also signals that the recession spell is here to stay till the next year or more.

Seeking other means of income is almost wiped off as everywhere people are trying to manage with existing skills and manpower. The commoner has to provide for daily expenses and increasing demands of entertainment and compulsory academic needs of children. Adjustments are seen in the weekend outings, discontinuing the services of domestic helpers, cutting the visits to malls or splurging on the special wardrobe. A treat remains special now and eating outside can be well controlled by savoring home food.

Medical expenses are generally ad hoc in nature and hence it is prudent to provide for emergency situations. Financial personal planning has to be done meticulously with certain fixed expenses in mind and also trimming frivolous spends. A monthly or rather weekly budget would seem necessary. The effect of economic meltdown does have a stabilizing effect as the expenses of fixed nature cannot be reduced and hence people usually accept to change their lifestyle.

There are fewer trends in commoners indulging in parties or splurging on gifts during festive occasions. The rise in cosmetics is also making it difficult for ladies to go in for latest trends in this sphere. The membership to clubs and fitness centers is also seeing an all time low as this is also an area of cost control by the commoner. The rising costs of vegetables and grocery items are also a cause of grievance for the common man.

What we call it “Global Financial Meltdown” or “Global Economy Meltdown”, there is always one keyword – "Global". It's sad that because there is too much greed in the American financial world, and too little regulation, the whole World has to suffer. Even countries that were careful how they handle money and credit are now looking forward to stormy days.

(Resource : Compilation from Some Internet articles)

Technical Analysis : Global Recession and Indian Stock Markets

Global recession has undercut through the fault lines of Indian stock markets. FII are selling off the bourses and it has brought the stocks to a virtual landslide. Stocks with high-held head at 22000 are looking for safe nooks at around the 8000 levels. Market capitalization is at abysmal low and to add to the trauma, global cues are not getting any stronger.

In these dark times it becomes even more important to rummage through the technical analysis section of BSE/NSE before trading, investing or even speculating (we mean the quintessential day traders)

Technical analysis is the method of stock analysis either perfected by a stock expert or unassuming software with potential of grasping market clues. Technical analysis software’s can help a trader in exploiting the BSE and NSE for their diverse day trading and investment opportunities. These can be charting modules which align to methods of technical analysis and stock analysis. The software also helps in drafting the candlestick patterns. What’s more! The software provides terminus for trading in NSE listed stock and the unpredictable futures trading.

Let’s forget about the “too technical” aspect of technical analysis and center our thoughts on the largely fundamental plane. All of us know of the present market volatility in Indian market. It is funny how the ‘resistance lines’ are falling apart and ‘corrections’ have become elusive. We see ‘rallies’ but they are largely negative runs. ‘Circuits’ have become a common site given the consistently sorry hours of trading. In such times, stock investment needs a lot of grit and heart of steel but it also needs prior technical analysis advices.

Technical analysts may look for Fibonacci retracements and other technical dropdowns but they assist us in fundamental, layman based way.

Technical analysis talks about the largely expected direction of stock movement and recommends stop losses ands stop profits in advance. Technical analysis endorsements can enable a layman to decide whether to buy/hold/sell his stock. Such portfolio management by experts can yield great fruit in the long run.

The stock analysis methods can help a novice to understand the precision exit points for winning stocks. This way he can fully maximize sharp turns of a fledgling market.

The analysts track the stocks a person wishes to venture into, and then suggest precision entry levels. Technical analysis also teaches us the techniques of derivative training and asks us to make profit both while the stocks fall and the stocks rise.

There are groups providing high-class equity services. These provide new wave automated online services allowing the traders to become members and set their own terminuses. Panels of experts and technical analysis folks help in analyzing over 200 BSE scripts. The online trading system permits a trader to pursue the market through aligning to market watch, research tip receipt, stock alerts and real-time charts and news. The sites also ask you to trade any time-frame and generate few viable trading pips for you.

All these can help one trade in these tough times. Warren Buffet recently bought a lot of stocks on the falling Wall Street bourse. He proclaimed prophetically that “stocks is about being fearful when all else are greedy and being greedy when all else are fearful”

(Resource : Compilation from Some Internet articles)