Thread by @TreasureHunt_TH

Investor doubts&Clarifications –Current Vs 2008-09.
• Simple as well as difficult question of market bottoming and how much the indices will go down further...? Is this comparable to 2008-09?
•If indices go down further why not stock what one holds and how much?
• And...

•What should be investment style in such scenarios?

~~Our view points .....

1)Market current bottom what we feel is 7400—7500 only. Most of the bad news are priced in to the stocks. Some thing very BAD may quickly pull this down towards 6800—6900 with a faster recovery.

2)Current Nifty PE and 2008-09 (18.6/10.6). We have done a co-relation of the same and the max nifty and PE down side can be 15.3. This we expect on a worst case scenario. Why we don’t expect a PE of 2008-09 …? Multiple reasons…!!!

3)Market always does forward thinking a minimum of 3 months to one year. So most of the bad news are already getting priced in except the US corona situation and any further damage beyond expectation.
4)Its comparable to 2008-09 in terms of price but not time......

It may not last like subprime crisis as new and unimaginable things used to pop out during financial crisis. But investors should always be prepared for worst and look for opportunities with a hawk eye approach.

5)Investors should keep cash and invest in tranches. We have already invested 65% and sitting with 35% cash. We have deployed 5—10-15% like that in each fall after breaking 9500. Any further fall will help us in terms of deploying more....

One mistake many investors did was investing in one stretch during 2008—09 crash.
6)Create a PF of max 25 stocks with an allocation like large,mid and small ( 50/30/20 Or 40/30/30). You need to be in the right stock and always look for multiple growth opportunities.

7)Periodical review of the stocks is MUST and we does this activity once in 6 months.
Accept the market correction with NO FEAR but as an OPPORTUNITY. All the best.
#Longterminvesting #Smartinvestors #Multibaggers