If you follow world markets, you could not have missed the name "Dubai" today!!! It was all over the media, whether be news channels or newspaper. I wonder if Dubai has ever been publicized in such a big way across the globe. It was unprecedented - The talk of Dubai debt and the effects it can have on world economy or markets. This all makes my mind wonder, how can a $60bn or $80bn debt rock the world, when over a $ Trillion could not. I do not think this problem happened overnight then why such a huge hue and cry as if no one knew it. Any shrewd investor investing billions of dollars in world markets could not have missed this. The debt did not build overnight, it was piling up over years and the financial crisis over last two years would have hurt the repayments and affected Dubai World also. Then why this had to come out now and that too without much details.
I am a avid follower of stock markets, and since morning when I switched on TV - the only word on everyones mouth was Dubai debt. I know the show started yesterday when european markets started their downfall and US markets were shutdown but then Asian markets already knew this and closed almost 2% down. Now today, when across Asia, Dubai was the "word of the day", European markets opened gap down and recovered and started trading in green by noon their time... Well now please explain me - European banks have the larges exposure to west asia and they are now not falling but we all are panicking. But I know that is how the World market works, lot of time sentimental and give volatile moves on any news, and very less time rationally. But then as a player in market, you feel frustrated when things just happen in a day without full details. It would be interesting to see for how long Dubai would be the word of the town!! I am watching.
Signing off -
Nilesh
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Nuksaan to nahi hua na ? Look at me - position hedged nahi thi overnight to opened up a new hedge in the morning. 1000 bucks investment for a MiniNifty Long wouldn't hurt. Thoda aur crack hota to 300 point down, average karne ko milta :( Missed it.
ReplyDeleteBTW, Dubai might not be important in terms of the $80bn debt, but definitely important for the Repatriation proceeds that Kerala gets from there (it's about 10% of our total repat proceeds). Let's see if that stops !
Well I am not saying ki nuksaan hona tha.. People could have earned in thousands or lakhs either way by being long when market dipped 600pts or by being short overnight. But then the issue was blown out of proportion without having realistic details. About expats, I agree it can have impact but then I think that affect is now in place for almost a year because job pressure has been since that time.
ReplyDeleteNice post, Nilesh !! Even felt the same, i was wondering if this 80bn $ debt would shake the mkt... I would have loved that as I plan to make some fresh investment :).
ReplyDeleteDubai was just a one day shocker and now people don't seem to care about it,