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Yes as per the situations,it seems that our equity markets are in stage 2 of healthy expansion but for investors its better to go through asset allocation because there is another rule that no rule is working in all kinds of assets & all times.
I think this type of situation is arrived in reality market in India. The rates are unreasonably high. Due to high intrest rate liqidity is low,demand is also lowered.Still the rates are adhering their levels. Let us see whether this leads to Minsky movement or not.
nicely explained. Appreciate it.
good article and seems to be familiar theory of leveraged financing expounded in the 1930 after the great depression. Guess it keeps coming in new avatars, but the basic principle is not to leverage beyond asset levels.
The 7 stages narrated of a Minsky Cycle are not necessarily to take place one by one, of in group or all at single time. It always depends upon market behaviour, perception as well as course of action taken by respective Government to interfere or not to interfere the market. Nobody can predict or even describe at a particular moment of time as to market is at what stage? It all depends upon thought process and perception of an individual.