Bloodbath from Dalal Street to Wall Street.

Today early morning DJ future index fell almost 500+ points and NASDAQ index fell more than 100 points and all across world stock markets crashed. I would say it is a free fall. For example, Australia’s largest online broker firm CommSec site crashed due to high volume of transactions. Indian stock exchange BSE halted trading for 30 mins since the grid overloaded with 10 percent drop with in first hour of trading. Being flat world has one drawback of this kind of ripple effect particularly in finance market. All this fear and chaos happened because of US economy which is world’s largest economy (21% of world’s GDP share) going to slip in recession. At last today morning Fed cut its leading interest rate to .75 basic points to 3.50 to rescue US market. Otherwise we would have witnessed a free fall in Wall Street also.
But as an optimistic investor it is good time to invest some “investable”(means saving and profit from last year investments) money into stock market. It is good time for bargain hunters. We can pump 10-15% of our “investable” money into market now and wait and see for remaining, and increase 401k contribution and ESPP to a little high to accumulate funds/stocks at low price. If you are pessimistic, just get out of this market and wait for sunny summer days.

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