Buying stocks is becoming fashionable. People are selling their houses and cars to buy stocks. |
It was expected. The market has been in a marathon for the last year and at some point it had to become exhausted. |
Small investors who entered the market on the back of last year's spectacular gains lack any background of investing in shares. If they are looking for a guaranteed return they should look elsewhere than the risky stock market. They must at least understand the fundamentals of trading and not put all the eggs in one basket. |
There is an improvement in the overall economic atmosphere and a better than expected increase in company profits due to tax reductions. But share- prices were still overvalued. |