Stock Investing Strategies

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Archive for September, 2016

War, military action and stock market

The stock market indices are closely related to the politicial conditions. War or economic sanctions can adversely affect the economy of a country. When the indian government announced the “surgical strikes” on terror camps in Pakistan occupied Kashmir, the stock market indices in India immediately collapsed rather rapidly. Initially it appeared to be a major strike and there were fears of war between the two countries, which could affect trade and the economy.
However later some defence experts announced that India had been conducting surgical strikes earlier also, however it was not publicly announced to avoid any controversy. The decision to announce the news of the strikes was a political one in September 2016, in retaliation for the attack on Uri. So the indian stock market recovered fairly quickly.
However some people were aware of the strikes, so they exited the stockmarket and invested domain names, to maximize their profit. Usually the demand for domains and stock market indices are inversely related, so when stock markets are falling or will fall in future, stock investors will sell and purchase domain names, which are easier to manage and liquidate . However no R&AW/CBI/indian intelligence employee is interested in purchasing the domain names till date.