Investing in Falling Markets | Shyam Sekhar | ithought Advisory

Should investors take advantage of the falling market? What stops investors from taking action?

Friends in this video for it or advisor i’m going to talk to you on the topic investing in falling markets the u.s markets have been falling consistently we have seen a 20 plus percentage fall in recent weeks we are going to see the fall probably last longer and plunge deeper in sympathy the indian markets have also begun to fall and every session is actually

Taking cues from the overnight session in the u.s markets as an investor i’ve always felt that these sharp cuts the fall in the markets are meant to be taken advantage of to the extent that i had money i would always want to use that money to buy specific investment questions scale up specific ideas and achieve a lower cost of ownership by taking advantage of

Every correction but i also notice that a lot of people who use professional investors or professional investment advisors view such corrections very differently as a matter of fact most people measure their investment returns when the markets are down and their response to that is often stopping them from investing more money when valuations are actually in

Their favor many people measure returns and then decide whether they want to invest more they invest more only if the returns are extremely appealing to them but as an investor i have always invested more money during phases when the returns were not appealing when i could even experience faces of drawdowns those times gave me better investment opportunities

Than boom times when my return looks best and valuations are all at very very elevated levels so the time when opportunity knocks many investors don’t make use of that opportunity that is very very critical and every investor must make sure that he buys when the valuations are low and is always willing to bet on equity as an asset class when others are not willing

To bet on it the difference will be significant for a person who does what i’m saying and it will be remarkably higher than what it is for a person who keeps questioning performance and never take advantage of a falling market of lower valuations as an investor are you willing to look at opportunities which are very attractive when the market is down in the dumps

That trait can give you much better returns than somebody who always invests large sums of money in times of market euphoria as a matter of fact most of the investors who use market sentiment as a investment barometer make more mistakes in their investing they make ordinary choices they get their timing wrong and they scale up when they ought not to investing in

Lump sum is good provided you get your timing right most people do lump sum investments at a time when they must be deferring the investments investing in falling markets always works when you defer your investments and make sure that you invest all the way down and again all the way up effectively your cost of ownership will be significantly lower and when the

Company returns to performance mode when its numbers start exciting the market you would be owning shares in that company acquired during a phase of relative gloom of relative negativity and you will be making more returns than most people in that company this has been my experience and this is what i want to be every one of your experience you should be able to

Do this provided you believe in what you’re doing you are extremely evaluation driven and you are always willing to invest when nobody else is willing to thank you for watching this video

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Investing in Falling Markets | Shyam Sekhar | ithought Advisory By ithought advisory