The Sensex May see Crazy Highs

The Sensex May see Crazy Highs

Nobody can predict the next level of the Sensex or any other stock market in this world very accurately.

But well, recently FII (foreign Institutional Investors) funds inflow in India may drive the Indian market crazy high. So from where did the FII’s get this money?

Well, it’s simple. FIIs borrow money from the US Government with ground zero interest rates and invest with this borrowed money in the emerging economies like India and China.

The US Government has printed more than US $ 1.2 Trillion in past just 2 years and by November 2010, it will print more US $ 500 billion out of thin air.

And this newly printed money is entering into the Indian markets which is driving the stock market levels to the sky high. In reality, the profits from the businesses have not grown. But this is the printed money from the developed world which is right now flowing into the Indian stock markets driving the Sensex to the sky high.

So now, the Sensex movements are failrly predictable. The Sensex will go up and up until the US Government won’t stop printing new money out of thin air.