Recently, the new generation of economists and investors in every asset class will not at all forget 2008 as it stained the image of analysts of finance and stock exchange plus the mutual fund managers. This one year taught all the investors the life time lesson. Because 2008 showed many investment myths. Thousands of employers lost their jobs and companies also left its assets. Here the fall in January and October, 2008 also left even skilled investors with stock and people get depressed from “Reliance Power” atmosphere of 2008. Bombay Stock Exchange sensex fell to less than 10000 levels for the very 1st time after 2006, January. This was a bear market and people get afraid. We even don’t get the logic behind it! But the positive thing here we can see is, trading did not stopped even in this bear market also. This affects on stock market recession graph. Initially it maintained the graph but yes, it’s going down.

Recession and stock market is highly interconnected. Now have a look on the ups and downs of the stock market in this scenario,
First of all, look at the BSE Sensex, it crossed 21,000 levels in the month of January and analysts predicted 25,000 levels but Sensex fell to 7,800 in the month of October. Now, Experts are talking about 7,000 target in 2009.

Now, If we look at the oil prices, In that scenario,. Crude Oil prices touched $147 per barrel and Goldman Sachs talked about $200 per barrel but crude oil in now trading around $45 levels. Experts are now talking about $30 per barrel in 2009.

So these all gives the pure image of Inflation. It moved to 13% and analysts talked about 15% but inflation fell to 8% in December. Experts are now talking about 4% levels in 2009. They are actually now talking about deflation. Let’s hope for the best here!

If we talk about India then, Indian GDP grew at 9% in 2007-08 and analysts predicted about 10% growth in 2009. Experts are now talking about 7% GDP growth in 2008-09 and 5% GDP growth in 2009-10..

In bank investment, it also gets affected. Investment banking is the most sought following industry in early 2008. They are currently either moved out or merged with banks.

The Great Industry of Real Estate! Its prices reached stratospheric levels in early 2008 but investors bought them as if there will be no land existing to acquire in 2009. They are now announcing bonuses and free offers to attract buyers. Many real estate stocks corrected by 70-90% in this year alone. We will hear some bankruptcies in 2009 in this sector.