What do you mean by Correction???
A correction in the prices
A correction in the views of bulls & bears???
I would say both.
The term "market correction" puts fear into some stock market participants i.e investors & traders. For big Institutional investors, a correction just means new stock buying opportunities.
Correction is a realistic scenario for stock market participants. After every bull run, a correction do occur. Just like after every summer, winters has to come.
Likewise, after every bull run, a correction or a bear run comes. Now it is upto the stock markets participants to deciede whether they want to take advantage of the correction or not. It' is often discussed, highly debated, analysed thoroughly and forgotten when the trend turns positive.
Likewise, after every bull run, a correction or a bear run comes. Now it is upto the stock markets participants to deciede whether they want to take advantage of the correction or not. It' is often discussed, highly debated, analysed thoroughly and forgotten when the trend turns positive.
How to make profit from the correction is the main discussion to discuss. Normally when a correction takes place, if Nifty falls by 12%, mid caps counters & by some means even the large cap counters fall by about 20% . For a long term investor it is as good as a “END OF SEASON SALE”
But the point is, one must identify the counters having following features
1. Strong EPS Growth of atleast over 20%
2. Strong fundamentals of the company & of the sector as a whole
3. Strong Management
Dont go for Real Estate stocks. Go for defensive sectors also in your Portfolio. Do , what i call it
"Long Term Investment In stock Market"
Regards
Mayank Gupta
Wealth Bazzar Financial Managers
Mumbai
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