Stock market rallies sometimes & crashes other times. That’s the inherent nature of market & it’s difficult to time the same.
Let’s peep into the history of Indian stock market crashes, Sensex biggest drops:
1992 ~50% Fall
2008 ~60% Fall
2015-16 ~26% Fall
2020 ~40% Fall
Despite all those multiple severe crashes, the Indian stock market still managed to give a decent ~17% CAGR return since it’s inception.
Just FYI, At 17% p.a. CAGR, your money doubles every 4.24 years & quadruples every 8.5 years!
In these crashes there were some stocks which were butchered & crushed heavily, and the same stocks have gone up by a whooping 50-100x in just 20 years.
It’s those investors who hold on to their quality businesses with patience who reap the maximum benefits of compounding at tail end of their 10-20 years of holding period. That’s where 50-100x money is made.
Ironically, most money in stock market is made by investing in bear markets.
Broadly speaking, daily price moments doesn’t matters; decadal returns does.
Stay the course & avoid the short term noise.
Those who make noise, grab attention. Those who stay the course, make the money,
You decide your priorities.
