Are You Missing Out on Investment Opportunities? Don't Let Panic Hold You Back!

Photo by Daniel Öberg on Unsplash

As an investor, it can be easy to get caught up in the noise and panic that often surrounds the stock market. With so much uncertainty and volatility, it can be tempting to sit on the sidelines and wait for things to settle down before making any investment decisions.

However, as history has shown us time and time again, these corrections and bear markets can present some of the best opportunities to invest. Instead of succumbing to the fear and anxiety, investors should focus on accumulating great companies with strong fundamentals.

Since 2010, the Nifty has corrected 8 times by over 10%.

Each of these corrections presented an opportunity for investors to buy into the market at a lower price and potentially reap long-term gains.

For example, in May 2010-June 2010,

the Nifty corrected by around 16% due to concerns over the European debt crisis and weak global cues. However, investors who were able to see through the panic and fear and accumulate great companies at a discounted price, saw their investments grow significantly over time.

Similarly, in August 2015-February 2016,

the Nifty corrected by around 22% due to concerns over the Chinese economic slowdown and falling commodity prices. Again, investors who were able to stay focused on the long-term and invest in great companies, saw their investments rebound and ultimately grow over time.

It's important to note that these corrections and bear markets can be challenging and even frightening at times. However, as an investor, it's important to stay focused on the long-term and remember that experience teaches you when to buy and strengthens your conviction.

So, to all the investors out there, don't be swayed by the noise and panic. Instead, use these corrections and bear markets as an opportunity to accumulate great companies and potentially reap long-term gains. As the old saying goes, "buy when there's blood in the streets."

Mayank Mehraa, CFA, FRM @CravingAlpha

The markets have been very kind to us that we have been able to consistently beat the benchmark!! Thank you @ETNOWlive for this interview and @smallcaseHQ for enabling us to help investors !

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