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Bloodbath in the Markets !!! Should we worry?


Hello friends and investors,

I have been receiving hundreds of emails in the last couple of weeks with a common concern regarding stocks moving down more than 50 - 60% in market value from their glorious high. The essence of almost every question is "Should we worry? What do we do now? :-("

The answer is Yes and No. Those who picked up their stocks without doing their own homework or analysis definitely need to worry. Those who invested with the intention of making money overnight definitely need to panic. I would suggest the folks who come in the above category to change your mindset before its too late. And believe me, you can, my friends...

And No Worries, clearly for those who invested in a sound business with a long term vision and understanding of the Potential and Value of the business. Even if your stock is down by more than 50% in market value, I'm sure you know that your business is good/sound and these are temporary gyrations. I can assure you that if you have chosen your business well, you have no reason to doubt your own conviction. If the business is doing well under a great management, do not worry at all. The value will come in due time...

As far as I understand, 2016 is going to be a year of Great quality Stocks. The Indian Government is taking very good steps in various sectors to ensure that our Indian Economy moves in the right direction. A lot of high quality companies are currently quoting at very attractive valuations and the overall bearish mood in the markets provide awesome opportunities for long term. We just need to identify such businesses and then invest in them with a longer horizon and vision. When the overall market crashes, we need to use this opportunity to load ourselves with great companies.

Now, without knowing how to value companies, it is impossible to grab such opportunities. So focus on learning and then start investing :-) It is high time that we understand what the market is all about. Once we know what we are doing, these questions based on Worry & Panic will never creep into our mind..

I strongly believe that there will always be opportunities in the market. Do not ever think that if you spend time on learning, you will lose opportunities on the way. With the right knowledge, you will be able to have a fruitful year ahead in the stock market.

Let's learn together and then invest wisely :-) Just chill...

Good luck,
Fundamental Investor

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