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17 Jul 2020 by Jigna Shah
Missed The Stock Market Investment Opportunity Once? Do This - Research & Ranking

Volatility can scare even the most experienced investors. Yes, that's right!

When times go haywire, many investors get jittery and start questioning their investment strategies and stocks in their portfolio. And this is more often the case for novice investors, who either:

  • Pull themselves out of the market and wait on the sidelines
  • Feel left out when the markets start heading back to normal

The first thing investors need to understand is - volatility is inevitable. It's the nature of markets to go up and down over a short term. Since short-term fluctuations are primarily driven by investors sentiments, trying to time the market is a futile attempt. There are two things to consider during volatile times. Read more about it here.

Coming back to the point, markets are going to remain volatile at least for some more time. Ups and downs would be common, and investors who can leverage on the downs can create sustainable wealth for the future. Now, let me tell you why I am talking about the downs here.

As we are aware, the lockdown over the past few months to combat Covid-19 had brought work across many industries to a complete standstill affecting both revenues and profit margins. So, let's get the elephant out of the room here. Don't be surprised if many of the companies may report dismal Q1 results.

The immediate impact of fall in earnings across many companies in Q1 can be visible in the form of a mild market correction. But rather than calling it a market correction, I would like to call it as a 2nd opportunity to take the first step towards wealth creation in 2020. Let me tell you why.

Missed the 1st stock market opportunity to invest?

The 1st stock market opportunity to invest for significant wealth creation this year was on 23rd March 2020, when the market fell to their lowest levels this year from the yearly highs of January 2020. Since then, markets have bounced back almost 40% from their lows and are now trading at just below 15% levels from historic highs of January 2020. In fact, many fundamentally sound businesses have grown manifold since then.

Company

Price as on 15th Jan 2020 (in Rs.)

Price as on 23rd March (in Rs.)

Correction %

Market price (As on 16th July)

Growth from March %

Maruti Suzuki

7482

4220

-44%

5873

39%

GCPL

762

434

-43%

696

60%

Emami

311

164

-47%

232

41%

Britannia

3114

2138

-31%

3858

80%

Dr Reddy

2918

2768

-5%

4148

50%

Bharti Airtel

468

407

-13%

562

38%

Axis Bank

746

309

-59%

432

40%

ICICI Lombard

1359

826

-39%

1250

51%

L & T

1323

724

-45%

919

27%


So, in case you missed that golden stock market investment opportunity and felt left out, don't make the mistake of waiting on the sidelines this time. Now there can be two cases over here:

  1. You did not invest when the markets corrected on 23rd March
  2. You may have invested and are now worried about your portfolio

Now, for the first case i.e. You did not invest when the markets corrected on 23rd March

As I told you, when the opportunity comes at your door this time, don't let it go! You may feel left out or regret thinking about opportunities lost. That's true that many businesses grew significantly post the correction on 23rd March 2020. However, you don't need to worry about it or feel upset about it. All you have to do is, identify a few solid businesses that you would like to own. When the market starts correcting, start accumulating them. And in case, the task of identifying businesses look daunting to you; you can take the help of an expert.

Don't miss the next stock market investment opportunity, come whatever!

Now for the second case i.e. You may have invested and are now worried about your portfolio:

Strong businesses are the first ones to rebound. Never forget this - strong businesses are like old wine. They only become more valuable with time. So even if you may have to witness a temporary knee-jerk reaction in your portfolio, hold on to it. Don't give up on your gems. Trust them and allow time to do the magic for you. Only one condition here: These businesses should be fundamentally solid. Rest all will be taken care of.

The Bottom Line

All the above pointers indicate just one thing, opportunities are rare, but they come time and again.

It is okay if you missed the first opportunity on 23rd March 2020, but trust me the second opportunity is not something which an investor should miss at any cost. Because once the bull run sets in, you may never get such an opportunity to invest for a very long time.

As rightly said, "Opportunities are like sunrises. If you wait too long, you miss them". However, the next time market corrects, rather pat yourself on the back and tell this to yourself, 'I am lucky to get this opportunity twice.'

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