Staying steady in uncertain market

Things are looking really dicey, and further breakdown cannot be ruled out. Remember the experience of the Corona crisis and what followed. In such situations, I would focus on the things I CAN control, such as price, lot size, and scripts. Just because the price has fallen by 50% doesn’t mean a reversal is imminent.

Your portfolio WILL give you pain, and significant amounts of it. If you are facing issues or having doubts about your portfolio, don’t hesitate to reach out to me. The markets are not going to zero, but if you believe they will, there’s no harm in liquidating 100% of your holdings, sitting on cash for a while, and praying you’re right. However, if you’re wrong and the markets reverse, you will have made the classic mistake of selling low and buying high.

The moral of the story, as Batman said, is that NIGHT IS DARKEST BEFORE DAWN. Such challenging times separate men from boys and ultimately dictate the CAGR of your portfolio. Those who invested in small-cap and mid-cap stocks will feel the most pain, especially if they bought at the peak.

Personally, I will be buying this dip and every dip until the markets close for good. That reflects my conviction in the equity market. The most important thing to do now is to examine your portfolio during this fall. Impulse buys will likely result in losses.