What goes up must come down!

Somehow the ongoing recession makes me feel that things are getting back to the normal rather than going into a slump.

Sometimes the laws of physics apply to economics as well. In this case I would just say – what goes up must come down. That’s exactly what’s happening at the moment.

Not very long ago (say end of 2006), the stock market was sitting pretty on 9000 points and the BSE Sensex too was rather stable. Then there was a sudden surge.

The bullish trend followed and the Sensex scaled up and up till it reached an unprecedented 21,000 points – an astronomical number, which obviously wasn’t stable and could be easily influenced.

Then the fall happened. The FII’s who were investing heavily on the bourses decided to pull out their money and the result is there for all to see.

The stock market crashed and came down to where it was before the surge had started.

The same can be said about the real estate market. The prices went up in the face of the booming economy but could not stay there for long and now they have started coming back to normal.

The other day a property dealer told me that it was bound to happen. “The prices had gone up too much and they were artificial,” he said.

So what you are seeing at the moment is not slump but return to normalcy.