Rather than waiting for another correction and missing out by staying on the sidelines investors should follow a staggered approach to investing as well as consider every dip as opportunity to buy.
Indian economy is like the celestial bird Phoenix. Just like the fabled bird Phoenix which rises back bigger and better every time from the ashes, our economy too has bounced back bigger and better after every crisis in the past.
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.
High quality, credible leadership, rapidly growing businesses can deliver impressive returns to investors if they are held for a long term. So, the focus should be on accumulation of such businesses, especially more important during uncertain times or market downfall.
Just like spotting a single cockroach means there are many more cockroaches around, the cockroach theory in investing states that when a company reveals bad news to the public, many more related, adverse events may be revealed in the future.
The stock market is not an easy way to create wealth. There will be ups and downs. Investors should be psychologically prepared to remain invested and have the patience to bear the temporary losses for long term gains.
Whether it is a reaction to Covid-19 or investing in stock markets, different people behave differently, unfortunately at either extremes. The reactions of people towards the Covid-19 crisis and reactions of investors towards the stock market can be briefly classified into five categories.
It is practically impossible to boycott everything that’s made in China. But yes, India can avoid unwanted Chinese products which can be produced in India with proper infrastructure support and loans at cheap rates to manufacturers and liberalized FDI.
India continues to be in the center of the storm. Even though the Covid-19 cases, continue to surge, resilient India has opened up business activities in a phased manner. And this should help in moving the wheels of the economy.
Today India is the largest motorcycle manufacturer in world the beating even China. Indian motorcycle companies have been on a global acquisition spree to reach global markets with TVS Motors acquiring the iconic British brand Norton, Mahindra Group acquiring Czech brand Jawa and British brand BSA.
How you perceive any situation in life depends a lot on whether you’re focusing on the opportunities or threats that the situation offers. The current case is similar – With the ongoing pandemic and border tensions for many investors, the stock market is similar to the glass.
Ever since the start of the lockdown towards the end of March, we’ve been hearing numerous stories on more people facing financial crunch. Some of them have lost their jobs, some of them have had to face pay cuts, some are facing delayed salaries. Today, I want to share with you how a 74-year-old, retired man is living through the crisis with ease.
In case of delisting of Adani Power shares, given the low valuations due to market correction in March 2020, it can be considered as an attempt by the promoters to increase their stake at attractive prices. Retail shareholders who entered the stock at high prices, however, would be the biggest losers.
During the last few years, the aviation industry in India has emerged as one of the fastest-growing sectors in the country. However, unless the issues affecting the profitability of airline carriers are taken care of, airline carriers in India will continue to bleed financially.
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