Asset Bubble In Property, Stocks, Credit Markets Explodes One After Another

For the past 4 years, unimaginable flow of liquidity in stock markets, credit markets, property market has created a un-sustainable bubble, which exploded this year. Signs of that were started showing in 2007 itself when U.S. housing market started witnessing price erosion. Huge crash that financial markets saw in the month Jan 2008 and is still haunting market players, has created a good oppurtunity for those investors who missed this bull run, markets can take heart that these players can now lend buying support to falling markets as global economic growth is still growing at a healthy pace of about 4.1% and atmost pessimism will soon bring rationality and thus at precisely this point when markets typically bottom out. Also valuations that have earlier reached unsustainable levels are now at much more reasonable levels. However, buying with small quantities in select companies with strongest fundamentals coupled with history of good dividend yield will bring stability in overall equity portfolio. Volatility will continue for some time to come as markets still are in a state of high nervousness and uncertainity. Equity as an asset class at present valuations presents good oppurtunity if one has to beat ever rising inflation and high returns.