The silent correction aka stealth bear market is here.
When the retail investors look at Nifty at 16-18k range and their stock portfolios down in past 6 months, it brings frustration to them.
While the broader indices are consolidating since past 6 months, many stocks are down by 20-50%.
Despite Nifty being <8% from all time highs, >550 stocks were at 52 weeks low today itself.
Low cost Index Investing also has to do with this stability in Nifty and Sensex.
Over the last few months, the inflows in index funds are just pouring in. This abundant liquidity flow results into constant buying into the top 50 stocks, keeping them stable. While the individual stocks aren’t getting this fresh liquidity support leading to polarisation across large and small caps.
This same phenomenon is not only limited to the Indian Market but USA too where most of the stocks are down by 20-50% from all time highs.
If you see small and mid cap stocks in your portfolio down from their all time highs, you know the reason why. Neither you, nor your portfolio manager or research analyst is at fault.
Stay patient and invested into the quality businesses.
This is a modern Index investing-camouflaged-stealth bear market. Don’t be blind to the recent buying opportunities.
