A recent movie trending on Netflix, U-571, revolves around the German encryption device, interestingly named the Enigma.
Unable to crack the code or intercept its messages, the enemy ships of Germany are sinking.
Even after the Enigma is captured, it took a considerable amount of time to find out how to decode it.
Coming to the year 2020, where we saw stocks on the Sensex and the Nifty plunge and then rise to dizzying heights, there is one thing that may explain the stock market Enigma.
The stock market is unlikely to go down big time until the ban on short selling is in place.
The ban, introduced during the onset of covid-19, is yet to be lifted in India.
In South Korea, the ban was lifted only recently.
While this column is not going to go into the details of short selling, it is somewhat clear that the Bulls in the stock market are at an advantage here and are going to drive the market higher.
Like all good things, this meteoric rise will come to an end when the short selling ban gets lifted.
It is only a matter of time. Even so, enjoy the ride before the market crashes.