I’ve seen this before. And I’m sure I’ll see this again in future until people understand.
Just like Seong Gi-hun, aka Player 456, main character of Squid Games have seen all before but can’t stop the carnage.
When markets corrects, you won’t have any cash to buy.
If by chance you have any cash left, you won’t have courage to buy.
Remember I used to write blogs cautioning about times when stocks could fall 30-50% & you need to be mentally prepared for that? This is that time.
Remember I used to say hold cash in your portfolio? It is for these days I wrote.
If you have both, cash & courage, you are both lucky & going to be the winner.
But in bull markets everyone thinks they know everything. Not their mistake. Even I committed same mistakes in my initial years of investing journey.
Anyway, history says that after every fall there’s a rise. Take 2020 coronovirus, 2022 Russia Ukraine wars where market fall was deep and markets rose to all time highs.
Those who panic sell and exit the markets, do the worst possible mistake at worst possible time.
When stocks fall, you buy more.
If you don’t have cash, you hold on & wait for recovery.
In 2024, people thanked Putin.
In 2026-27, people will thank Trump.
Use stock market corrections to buy quality businesses at cheap valuations. It’s like a discount sale. Make the most of it because Sale does not lasts long…
Make the most of it.
Thank me in 2026 when the markets would be again up towards all time highs. 2025, if we’re lucky!