Truth Speaker Mitra (@SubhajitMitra) 205 Followers 22 Oct

Investment 692 4

'Market correction'— it's not a panic sell signal but a buying opportunity

The short-term trader can sell, but this situation exists for three to four months in Dalal Street. Corrections are a wonderful strategy to enhance existing positions or invest less in new businesses.

There is a saying in Dalal Street — When the Us market x% correction, the Indian market follows x/2%.

A market index's or an individual asset's price continuously declining is known as a correction. A 10% to 20% decline in value from a recent peak is considered a correction.

On the other hand, when you mention a market correction, many investors automatically picture a crash or a bear market!

Generally, an economic shock or a significant social event causes investors to pause, stand back, and assess what's happening in the rest of the globe, which is when the U.S. stock market experiences a correction. Experienced analysts and investors always look forward to a correction in the stock market because it allows the market to stabilise before hitting new highs.

Remember, a market crash is a long-term journey in maximum time and can signal recession but not a market correction. 

To decouple your portfolio from this, you should have a mixed portfolio containing — Stocks, Bonds, Commodities, and MF.


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