"Irrational Exuberance"

The markets have a way of having the last laugh or so it seems. This is not a case of sour grapes but as they say, the markets can be irrational longer than you can be solvent.

Luckily, the dent was to our ego and not to our pockets. Options trading has a way of protecting your pocket even in the face of a long term prognosis going hay wire.

I am referring to the prognosis that the markets could see a major correction during our previous posts. We saw a big down move followed by a new rally which saw us breaking new highs.

The Nifty went past 4000, with a few hiccups on the way. Such that now, to be a bear or propose a bearish outlook for the future is out of fashion. Unfortunately we are old fashioned folks when it comes to money matters, be it trading or investing.

Scared? yes but bearish no! That is the mood on the streets. We think sign of the "Irrational Exuberance" are all there and we wait for our ego to feel comforted soon.

Talks of the economy over heating, inflation running beyond control are in the air. Each side of the argument has its sword drawn and ready to defend its view.

Our view on that issue needs a thoughtful look and another post. For now, we trade each day as it comes and leave no money on the table for the long term.