A True investor welcomes volatility, a wildly fluctuating market means that irrationally low prices will periodically be attached to Solid Business- Warren Buffet.
Should Investors Worry: Yes, if you are a short-term speculator, you should recalibrate your position. But for investors (long Term) we are getting same stuff at 20% discount now. It’s time to pick some, at least.
I feel markets will fall Further, this is not the bottom: – May be Yes, however not one predict the markets, it will always surprise you. But nearly a 20% fall, makes markets attractive and investor should gradually start building their Equity portfolios. One thing is Certain, if not immediately then in next few months it will stabilize and go back to previous levels and gradually higher. Always remember a 20% fall is 25% returns when it scales back.
My Portfolio is a Losses: Equity is a Volatile Asset. It will throw volatility in short term, but long term it will fetch you returns. Invest only if you have at least 5-10 Year of time horizon, stay on the course, don’t get perturbed with these blips. Welcome the Bear Markets because every Bull Market Starts from the end of a Bear Market. It’s simple: – You must Buy into a Bear Market to be part of the next bull market. Unfortunately, most do the reverse.
I’m worried, Markets will fall further, Should I Exit My Equities: Probably one of the worst decisions. For one we don’t know where the bottom is. Let’s say if it’s 10% below, we will never be able to Catch the exact point. What is imperative now is to decide Key Markets levels where you find it attractive and make and entry. Always Remember: Exit During BULL Markets and Enter in the Middle of Bear Market. There are tons of data available to prove this, money is only made while you buy in BEAR market.
It is just another phase of volatility which will be over as soon as inflation & interest rate peaks. We have to undergo many such stress test in the Journey of Wealth Creation.