China and India Markets – Too Hot to Handle?

In my blog post dated October 17 and October 21 last year [2007], I had pointed out that India was riding on a “Roaring decade” (similar to the 20’s of US) and also mentioned the Economist comments that BSE was, perhaps, too hot to handle! Here is the comparison as to how BSE and Shanghai Composite have behaved in last 6 months. While BSE has lost 1/5th of its value, Chinese market has lost almost 1/3rd of its value. And, perhaps, Indians have some catching up to do with the Chinese even in this area!  Rising inflation, fuel prices, food crises, saturating export markets due to soft dollar … Is it the beginning of the end of the “Asset Bubble” in India and other Developing countries?  BEWARE!!!

clipped from finance.yahoo.com