The current fall is an excellent opportunity for long-term investors to build up a portfolio of good, stable stocks/funds.
Cast your mind back to the market crash of 1992 or the dotcom bust of 2000. At that time, these seemed to be major crises for stock markets. But if we look at the historical chart of the Sensex versus time today, they appear to be minor blips in an otherwise upward trending graph.
It is a natural human tendency to attach disproportionate importance to current events which have had a major impact on them and ignore all other factors which they would otherwise take into account as rational investors.
The world is not coming to an end, but the way the stocks are getting hammered 70% down from the top, it gives you a feeling as if the world is going to end
But contrary to investor perception, this is the best time to (buy more and) average out,And SIPs are an ideal vehicle to do that. SIPs should be continued to benefit from the lower prices prevailing now. And, I am sure, it is a great time to buy. Somebody putting his money at this point of time, is sure to get amply rewarded over the next 24-30 months. During market lows, human psychology plays a strong role. Fear takes over greed and people undertake panic selling. SIPs help to keep emotions away from your investment decisions and are a great vehicle to build long-term wealth. So keep your cool and take a long term view.
Equities are long-term investments. A short term blip creates fluctuations in prices but sooner or later, fundamentals will kick in.With India expected to grow at an average of 7% over a 5-year period, Crude down by 43%, nobody is taking note of these bright spots, BUY before others do, otherwise you will regret for a lifetime.
THIS IS A ONCE IN A LIFETIME OPPORTUNITY. BUY AND SIT TIGHT FOR 3-5 YEARS, YOU WILL BE AMPLY REWARDED.
Best of luck,
Srikanth shankar Matrubai.
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