- Corona Virus has hit the stock markets like a global epidemic in finance
Investors are in panic mode and as usual want to exit . Doing the same mistake over and over again
Many pessimist are trying to compare the same with 2008 crises where markets corrected by around 70%. Although we have corrected by 10% in this corona virus, this is being overplayed by pessimists
Conveniently ignoring good Service Sector PMI at 6 year high or High GST collections, IBC resolutions like Essar and Ruchi Soya are excellent for banks. Brent at 50 is like biggest boon to us And This is just the start
Corporate tax cuts will start to show the results now.
However let us presume that the crises are as big as 2008( which is 100% untrue as per me and many analysts) Indian stock markets played as under
On the next day on 22 January 2008, the Sensex again fell by 875 points to 16,729.
On 11 Feb 2008, the sensex fell by a further 834 points to 16,630.
On 3 March 2008, the Sensex fell by 900 points to settle at 16,677.
On 17 March 2008, the BSE Sensex fell further to 14,809 - a fall of 951 points.
On 24 October 2008, the BSE Sensex fell to 8701, a fall of 1070 points in a single day.
On 26 November 2008, the sensex continue to fall, in the bargain
.dashing middle class dreams".
Now let us look at various scenario
Scenario one
Where investor panicked and did redemption during correction
SCENARIO 2
When Investor sold at last leg of correction: check losses
Scenario 3
When Investor did not act and decided to stay invested: tax free FD returns
Scenario three
When investor decided to add on every correction: Check his last leg of investment returns
Now we are at stage two or three of correction,no one can predict. I leave it your wisdom to redeem or add more on every correction
There are various other times when our markets have corrected
Global markets have been rocked many times by health crises. But they have always rebounded sharply, post the dust settles
Now I leave this to your wisdom to panic and withdraw or create wealth by adding more to every fall
Market behave like that but your reaction towards market correction is always looks stupid.
ReplyDeleteYou were only who recommending YES bank some time back and today crying.
Tagging MOF or Namo wont work.
Behave like a matured investor but being PMS advisor you always behave like a trader.
If it is an opportunity, invest in such market. It is a wise decision. But still blue chips are over 50 PE, so we have to wait more to invest in full force.
You are a good lady and professional and I respect you lot. But one thing is missing that is Marturity.
Thanks Renuka
Keep the good work ....