A jungle fable

As I write this article on Thursday, March 26th, the Indian equity markets are in the middle of a buying panic which seems to be as strong as the selling panic that was raging a couple of days ago. Inevitably, this will again turn into a selling panic as something else happens tomorrow morning and back again in a couple of days. Conventionally, one can justify looking upon the equity markets' movements as a kind of a judgement on what will happen to the economy. Those expectations must be set aside now. We're deep into blind knee-jerk territory right now and will stay there for a long time to come. Even in normal times one should pay zero attention to what the stock market does on any time scale less than a few months.