Rating agencies have their own shades of black, citizens of US who know about GFC know this. This being said, if the reasons for a downgrade have merit, the reasons why not necessarily new and were present in the past, but if the present situation cannot be compared to the past, there could be some affect. Wall Street knows what it is doing. I have got not one bit of idea about US bond yields, but have a little idea about our bonds, our creditworthiness, our rating agencies, so doing some extrapolation.
As far as your second question is concerned, all are interconnected economies, and as such, interconnected markets, so if there is a damaging reaction over there, I guess it will reflect in our market too. Profit booking always happens, even when the results are good, so if the big movers change their stance, so will the participants below them, at least for the shorter term. And if we believe that participants are taking informed decisions, becoming matured, and buying the dip has become a strategy, then the effect on our market could be less.
Very vague thoughts, so take them with a bag of salt.
| Subscribe To Our Free Newsletter |
