Experiences of veteran Investor of previous market crashes of 1992/2000/2008
1. Though it may seem impossible, markets do make a bottom somewhere
2. Some stocks will go to the dogs or get de-listed. Not all will survive but you can pick future stars for a penny to the dollar
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1. Though it may seem impossible, markets do make a bottom somewhere
2. Some stocks will go to the dogs or get de-listed. Not all will survive but you can pick future stars for a penny to the dollar
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3.The next bull cycle ,whenever,it comes will be lead by totally new sector/group of stocks. The market leaders of this run with astronomical valuations take on a average of 10-12 yrs to go back to those same prices
4 Do not try to buy beaten down stocks at one go/fell 2 much
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4 Do not try to buy beaten down stocks at one go/fell 2 much
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5. Watch Nifty PE ratio. Historically Nifty bottoms out below 12 PE .Do not follow complex/arbitrage/innovative interpretation of PE. Stick to basics : below 12PE is good
6 . If investing , invest in tranches of say 20% . Be ready to take another 20%-15% below current price
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6 . If investing , invest in tranches of say 20% . Be ready to take another 20%-15% below current price
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7. Stay diversified . Minimum have 10 stocks of different sectors . Diversification/Variance will keep you alive in volatility
8. The markets will turn much before fundamentals turn. Hence use technicals , fundamentals will be too late
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8. The markets will turn much before fundamentals turn. Hence use technicals , fundamentals will be too late
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9. Do not use loan or emergency money to buy stocks . Use only money you can afford not to use for next 10 years
10. There is no hurry , take your time to be comfortable . Let the markets first form a base.
Enjoy .
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10. There is no hurry , take your time to be comfortable . Let the markets first form a base.
Enjoy .
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