Money is made in the stock markets when there is blood on the streets. The stock markets the world over is going through absolute carnage and India is no exception. The world economy is going through gloom and doom but there is always a silver lining as no situation in life remains permanent and nights are always followed by dawn. India is strategically better placed to deal with the present situation and our huge population means the consumption story itself can prop up our economy by leaps and bounds and cheap labour available in our country means our exports can compete with the rest of the world like never before.
The falling stock prices should mean good news for investors as many stocks today are even available at half their actual valuations. Stock prices may have crashed but valuations of companies don’t depreciate or appreciate overnight. Investors should be careful what they buy or sell on market rumours and use their due diligent while investing in stocks. Stocks are falling because many company stocks have been pledged against debt while many may be rising due to manipulation by management and operators. So one must do research and remain invested in fundamentally strong companies which has delivered good returns over a period of time and one must keep patience for your picks to give you fruitful returns. You have to nurture a mango tree for years to get the juicy fruit and stock markets are no different.
With markets having fallen drastically and with some more panic selling to come in the coming days, stocks would bottom out in the coming days and year 2016 would give us the best opportunity to make money in stocks. Good time to invest in stocks this year and let’s hope blood on the streets turns into healthy profits for the brave hearted who would dare to invest money when everybody are panicking and running for shelter and cover!
(The views expressed by the author in the article are his/her own.)