Bull Market, Bear Market and Scams

It is a routine for the scams to break out when the present sector, which is in bull Market, starts seeing a Bear Market.

The Reality,Power, Infra sector which was in a extended bull market since 2006 to 2008, never participated in 2009 to 2010 rally in a big way. These sectors were underperforming when compared to Nifty.

Under performance of these sectors will lead to locking of huge speculative funds that we were came inside on seeing a bull market in these sectors. When they get struck, lot of scams and frauds will come in future.

The 1992 Harshad Mehta Scam was related to Old Economy Stocks which were bullish at that time.

The 2001 Ketan parekh Scam was related to Technology Stocks which were bullish at that time.

So, the next scam would come from the stocks related to reality, power and infra.