Rakesh Jhunjhunwala's views on CNBC TV18

Here is a verbatim transcript of Investor and Trader, Rakesh Jhunjhunwala's bytes played on CNBC TV18. Also watch the accompanying video.

On the bear market:

 

What is a bear market, what is a bull market, I don't know. Numerically - surely, since we have broken the last lows that we had in August 2007, we'll have to term it as a bear mkt. But I don't think the long-term Indian bull market has ended. I think it’s in interruption mode.

 On the macros:

 I don't rule out anything in the financial markets. I always question- suppose I have to pay margin tomorrow, to Lehman Brothers, I would have questioned it. It may be Goldman Sachs. I will not pay if they are a position taking company. If you take position yourself, I'll not pay margin. Never believe that the BoE (Bank ofEngland) cannot fail, or if the BoE may not fail, it may go back on its words. They change policy retrospectively, which amounts to going back on your words.

 On the US situation:

 I have made presentations to show in October, that this is going to be an unprecedented fall. And I have reasoned out how much is the lending to subprime, and that this problem cannot be stopped by reducing interest rates. The American bull market has come to an end. It may be a long correction.

 On exercising caution: 

If the Index instead of going from 3,000 to 21,000 had gone from 3,000 to 13,000, and then back to 11,000 - would that not have been a bull market? Then it would have been termed a bull market correction. So at levels, where you saw the participation, the valuations, you saw what was coming in the Western world, you saw the sheer corporate greed in India; you saw the senselessness with which people in India just wanted to buy anything. They were all indicators - so what is wrong in being cautious?

 The mother of all bull runs is still to come

 The mother of all bull runs is still to come. But I think the next high and the next bull market will be far bigger and have far more participation, and far more excesses than we had in the last one year.