The wonder that is equity

One of the biggest bulls in the Indian market rather prophetically stated last year (when the markets had started its downhill journey) that rather than test the will of the investors what this downtrend will do is test the 'faith'.I thought at that time this gentleman hit the nail on the head and how right he was.It is hard these days to find a soul who would vouch for the wisdom of investing in equities.Our faith in the markets is truly being tested.There is a strong theory floating around that the era of equity investments is over.

So is it really the end?Not by any stretch of imagination.You only have to look at the rally of the last 3 days. And what sparked off this rally? A rather innocuous bit of information emanating from citigroup that the first 2 months of 2009 were run on profit. That's the power of equity investments for you, it will punish the bad news and reward handsomely the good ones, and how!This is not to mean that we are done with the downtrend, far from it.But imagine what a turnaround in the macro factors will do for the markets.Those on the sidelines will be left wondering why they didn't board the bullet train when it stopped and waited for them for ages.