Stock Market Crash | What caused the Sensex Meltdown? | Akash Banerjee - read the full article about Business Services 2021, Business Services and Consulting & Business support from The Deshbhakt on Qualified.One
Stock market has outperformed politicians... in stooping to a new low.
Apart from a few experts (who had foreseen Monday Mayhem) a large number of retail investors were shocked.
By the end of the day...
International investors had withdrawn their funds, retail investors are in a squid game kind of situation.
Warning signs have been in the news since Friday... and now this Monday fall.
In few days, market has fallen by 2500 points. Sensex rallies are a distant dream it seems.
News channels blame FII selling spree... Monetary policy and liquidity tightening or Omicron fears.
But had the market gone up 1000 points, these same channels would hail domestic investors, monetary policies and reject omicron fear.
Predicting the market behavior is hard. However many had forecasted this downfall.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services has pointed out major corrections in the past.
Valuations of some companies are not justifiable... largest ever IPOs are launching frequently by loss making organizations.
Rajat Sharma of Sana Securities had tweeted 5 days before...
So he predicted the spark in the market.
Some experts, on the other hand, who were certainly hoping a 75000 mark by March 2022 are now saying the market will fall more.
Saying that dont buy stocks now, as the market will fall further.
What should you do now? And when some experts said that the market was in a bubble, did you listen? [PLEASE SUBSCRIBE AND HIT THE BELL ICON] Middle class is easily fooled, especially by the news on television.
They queue, troll each other, forward message many times, not hold those in power accountable, happily buy petrol, abuse previous government.
If a middle class person is able to save some money after all the hustle, they invest it in the market... hoping for ache din.
As Rakesh Jhunjhunwala expects bull run to continue for years. Rakesh has also predicted double digit growth because the government is doing so well.
On top of that, Rakesh Jhunjhunwala has a new airline taking off to ache din soon.
Middle class had once invested in the market and lost money... but this time the bull run is definitive... it wont vanish as per Rakesh Jhunjhunwala.
If you doubt that the economy is struggling, dont. Because as per Rakesh Jhunjhunwala, there wont be any third wave. We wont admit even if it comes.
Logic of Rakesh Jhunjhunwala is very simple and the middle class has taken fancy to it.
Like a premier institution is removing ceiling fans to solve student problems.
Think simply... dont complicate. As per Rakesh Jhunjhunwala, political stability has been reached. Modi ji will be in power at least through 2029.
But the economy was at its worst when there was political stability at the time of Indira Gandhi.
Even despite political instability, our country has grown massively. According to Mint, Rakesh Jhunjhunwala has lost 230 crores in 10 minutes.
Large investors safeguard investments by taking calculated risks whereas retail investors suffer most when market falls.
Many retail investors are first timers so this fall will be a tough test for them.
The market is not falling due to FII selling spree. It is our own money.
So what will the retail investor do... Buy the dip or sell before it is too late? What should you do? But before that, thanks to Kuvera for sponsoring this video.
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So what to do when the market is fluctuating? As long as you dont invest loaned money, you are safe.
If you borrowed money and invested... you are done for. Even Rakesh Jhunjhunwala cannot save you.
Remember that investment is a long-term game. That is how money can be made as you can reap the benefits of compounding.
If you are regular investor, then rule number one is not to panic... dont sell out of fear. Instead buy the dip.
Number two... stop watching news channels. In this case, business news.
For example: This is Reliance backed CNBC TV 18 building up a mirage of 75000 mark.
Another example... anchors wishful analogy: 75 years of independence so market also at 75000 soon? USA is 250 year old but Dow Jones is 35,000 level. What a loser of a nation! Third, big investors are not your pals. They are in the market for money, remember. They are like politicians who promise a dreamland.
In 2016, Vikas Khemani, president and CEO of Edelweiss Securities spoke to ET Now: Sensex target of 75000 in five years.
After five years, we are at 55000 mark.
Some experts were even discussing a possibility of 100,000! Makes sense if the countrys GDP is 5 trillion by 2024, right? Fourth point: Dont follow stock tips from friends, family on whatsapp university.
It is important to read about stocks, be patient, invest in the market long term.
If you buy-sell by obeying tips in a group, you might end up in losses.
Finally, stock market is not gambling. Study the market behavior in past two decades and you will at least have an idea how it works.
But it is not easy to predict the market (otherwise everybody would be Jhunjhunwala) Dont keep unrealistic expectations.
You will have to figure out when to exit the market depending on the goal. You will not find that tip on whatsapp. Study and use your knowledge in the market.
Did you like the episode? Let me know what you think.
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The Deshbhakt: Stock Market Crash | What caused the Sensex Meltdown? | Akash Banerjee - Business Services