The BSE Sensex rose by 570 points on Monday 29th Aug'11. After losing more than 2000 points in the entire month of Aug'11, what made the markets to rise by more than 3% on a single day . The answer is - Perception ... And perception can change overnight. This time , there was an announcement ( or lack of announcement ) by the US Fed Chairperson on Friday - 26th Aug'11, that the Government should try to create more employment . This created positive vibes all around and the stock indices across the globe headed northwards.
Well... well... all you fundamental folks, perception can be an important tool for making good purchases As Mr. Bufffett retierates, buy when folks around you are fearful and sell when folks around you are greedy.
Rest my case here.... Perception rules along with emotion...
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