The march downward continues…
This March of 2020 continues to be filled with anxiety and stress. The stock market has been continuously marching downwards. This is not the first time we’re seeing something like this. In the history of the last 30 years of our stock market we have seen such movements. After the dust settled, we have also seen periods of fabulous returns.
But this kind of the period is not easy to live through. The important thing to understand is that everything is normally exaggerated. When the markets are moving up, we hear unrealistic numbers. Same happens when the markets move down. Meanwhile it is not easy to sell off and hope that the market goes down even further. It could turn around any time. I think we’re almost done with the correction based on the historical average of the last 30 years. Also note that we are in an extraordinary situation.
What should we do? Focus on work, on family, on life… and stay buckled up to ride the next rally. When the scenario changes for the better, we will also see solid movement upwards. This normally happens within 6 to 18 months. So by the end of 2021, our portfolios will be not only back to normal but would also have more profits. Keep your faith in the ability of Indian businesses.
We have a long way to go; the younger population of India today is the largest in the world and this population has got to do a lot of things. They have to buy homes, vehicles and luxury goods. They have got to also travel and indulge in great experiences. They are intelligent and they are going to have a lot of disposable income. It would be wise then to be owners of shares of the companies that are going to benefit as the large population of this country lives their life journey. I think we will see a great bull market for the next 10 years till 2030.
What would also be nice and clever to do is to start investing if you’ve been waiting. If you have surplus funds at this time and if you did well to invest them, then you are going to be very lucky. At our end we are continuously buying and making large movements as the stock market keeps correcting. We do not know where the bottom is; the probability of going down further is about 20% in my view. 80% percent chances that we will move flat and slowly turn upwards. Meanwhile we maintain our strategy of being approximately 40% in large-caps & blue chips, about 40% in mid & small caps and about 20 in promising sectors.
We keep the faith and continue holding, continue buying and we urge you to do the same.
Kartik Jhaveri
Director – Wealth Management
Contact: 022 – 40024043 / 44 / 45… What’s app on + 91 7977877924