A common feeling across investors that they missed the train

This is very common feeling across investors today, who wait for bottom to begin their investment. Equity markets started moving up, and they felt initially its temporary and they will invest immediately when it will fall again, however, market always surprises and this time also it has surprised by continuously moving up.

Investors are feeling that, its expensive to enter now as stock is up 20% from bottom . These are same investors who were ready to invest in this companies when they were trading at all time high. Today, when they got an opportunity to enter at 20% discount, they are waiting for 40% discount as this was seen in last month. 

These investors misses a lot of opportunity as during correction they miss the basic fundamentals of equity i.e. there is underlying businesses which defines valuation and businesses doesn’t suffer as their market price suffer during correction and hence these companies becomes more attractive with better dividend yields.

Investors also needs to understand that, each bull market after a correction lasts for a longer period, and rewards to investors who stay invested. See the last bull market after 2008 correction has remained for almost 8 years giving ample opportunity for investors.

We strongly believe that, correction is huge opportunity to build portfolio of good companies in stagger manner so that even though you are not buying your stocks at lowest price, your average buy price will still be far below it’s historical high price and you can be benefited significantly during next bull run.

I would like to conclude this piece with a famous quote of Mr. Warren Buffet

“Time in the market is more important than timing the market”.