What is next ?

Most probably  there will be deep red in the street on Monday as a knee jerk reaction to the developments in US.Business channels and analysts  will surely  make you panic , but I think it is a time to act with prudence and not on emotions.In fact India may be one of the big beneficiary of the ongoing happenings in western world.We all know , the main problem Indian economy facing now is the non stop rise in inflation mainly on account of commodity prices. Current happenings may turn as a boon for India  and eventually we may reach a situation of cutting down the interest rates. Such a situation will surely help our market to start the next leg of rally. Even we take the situation in US , this warning from S&P may help that country to think seriously about their economy and save it from a disaster.So ,better to stay cool ,think and then take a decision instead of taking decisions based on emotions.Try to spot out the beneficiaries of softening western economies,catch them in small lots.Never over trade and don't think the entire problem will end in one or two days.Don't divert funds to stock market to make quick gains if such fund  is meant for some other time bounded purpose.Avoid leveraged purchases  is the most important point to note . Let us concentrate in quality companies - which will surely out perform in long term.