INSUBCONTINENT EXCLUSIVE:
I am not in the camp who say this has happened for the first time in 20 years or 30 years
I don't think there was anything abnormal in whatever had happened
It is typically a repeat of what happens after every euphoria
You can say 100 shares fell 90-95%
To know the truth, you need to rewind the clock little bit and see what had happened between 2015 and 2018
Look at the data of 100s of bhangaar stocks, which doubled every year
You eventually pay for your sin
Investing is a blessed business, until you abuse it
midcaps got hit badly in this selloff in tandem with companies that had corporate governance issues
This is an opportunity to buy
There are very few good stocks in the market right now and they may have bottomed out
We may not see any V-shaped recovery in the companies that have issues
They may recover partially, but it is very difficult to say if these stocks will make money.
There are some stocks which may not recover for
They have problems in their balance sheets and face questions over their management
Some of them may have touched historic high prices but may not touch those levels again.
Investors who stay in the market for the long term
One should invest and stay in quality companies
This is the only moolah mantra
We have seen this in 2008 and 2009 and now in 2018 and 2019 as well
Investors should jot down why they have invested in a particular stock and what mistakes they have made in stock selection earlier.
Slowdown
or bear markets are good opportunity to pick investing lessons.
This kind of selloff does not affect high-net worth investors or big
It only impacts small investors and those who come into the market for the first time
They get ruined.
High-profile money managers, who deliver market gyan on TV channels are to blame for this
managers become gods, it's time for a market crash
They created an environment and sent messages that investing is a no-brainer business
They destroyed the investing culture
It was very similar to what Harshad Mehta and Ketan Parekh did some years back.
India is the capital of scams
People abused the stock market platform to create scams
Harshad Mehta, Ketan Parekh and now host of corporate houses
Mother of all bull markets is always followed by mother of all bear markets.
People say there was a bear market from 2009 to 2013
If I look at my investments, I got most of the rewards on my investment between 2009 and 2013-14
Most HNI investors must have made a lot of money between 2009 and 2013.
Remember, the market moves on rotation
Stocks which performed between 2002 and 2007 or 2008, did not perform between 2008 and 2014
Stocks which performed during the boom of 1992 to 2000, did not perform at all between 2003 and 2008
Ultimately, that is why it is said that you should have a 10-year horizon so that you can get one cycle to recover or make your money.
Last
Diwali, I thought that maybe 90% of stocks in the market were bhangaar (junk)
This Diwali, I think 95% of the stocks are in that category
It is very difficult to say when all these stocks are going to revive
Broadly speaking, in the majority of good stocks, the bottom must be in place, but recovery will take time
I do not think it is going to happen very soon
A market bottom may be in place or will be made maybe in next two months or so
But number wise, companies are going to report not-so-good numbers for next two to three quarters.
