The “Actual Correction”

Here is an interesting discussion I witnessed recently:

SGX now 16705,  ++ 85; After correction of 20-40% , many midcaps looks attractive..

Start accumulating.. Only for Investor

Absolutely, but when d actual correction sets in d markets, most of these mid-caps will correct far more 🙃Absolutely Devang, but when d actual correction sets in d markets, most of these mid-caps will correct far more 🙃

It got me thinking what’s an actual correction and when would it set up and is it worth waiting for it.

Almost every year there is a correction.

In the past 20 years there have been 8 over 25% corrections and 4 over 10% corrections apart from some 8-9% corrections.

However still the markets delivered a 12.7% CAGR making INR 1L-INR 10,86,000.

Now maybe some people were lucky and timed the markets well and made more than the markets.

However, for majority it would have worked just fine being in the markets and getting the 12.6% CAGR.

While lot of us track the index levels, individual scrips go through price/time corrections from time-to-time:

Here are some of the prominent stocks that have under-performed the markets over last 1 year:

Some of the high flying stocks of last few months

Here is another list from Moneycontrol.

As I often say there is no right or wrong in investing.

It only depends upon how you look at things and your relationship with money.

An investor should do what they feel works best for them so by all means wait for a correction, if that’s what works for you mentally.

All I suggest is “stay the course” irrespective of where the market goes so at-least your disciplines pays off.

Follow my twitter handle @manver1974 for more such shares.

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