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Now is the time to PANIC

Here is how the Indian stock markets have behaved over the past four months.


I’ll skip the reasons for the same as you must have heard it somewhere (or everywhere).

To say the past few months have been dreadful for investors is an understatement.

But it is times like these that test your conviction in your stock picks or whether you want to sell it off and run for the hills.

Back in 2009, I remember convincing myself one thing while I continued to add or buy new stocks for my portfolio.

You have to be in it to win it. Getting fearful and getting to the sidelines is not a profitable plan.

Of course, you shouldn’t be investing with money you need immediately or over the next 2-3 years. But if you still have 5-10 years to meet your important life goals – your child’s education and marriage, your second home, parent’s healthcare needs, or your own retirement – the time is getting ripe to make some big bold moves.

Now is the time to focus on the intrinsic value instead of the stock price.

This is the time you must keep your emotions aside…and PANIC.

Panic if you don’t have a ready list of quality stocks to buy.

Panic if you don’t have enough cash to buy those stocks.

Panic if you are panicking and selling everything.

Panic if you still believe your financial advisor – who made you buy dud stocks and mutual funds last time around – will get it right this time.

As I wrote a few days ago, there are times when you’ll make money from stocks from simply existing – just being in the right place at the right time.

We’re getting close to one of those times. So panic!

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About the Author

Vishal Khandelwal is the founder of Safal Niveshak. He works with small investors to help them become smart and independent in their stock market investing decisions. He is a SEBI registered Research Analyst. Connect with Vishal on Twitter.

Comments

  1. With a falling market, in a country like India (for growth prospects), it is definitely a time to panic and be ready to pick some quality stocks at attractive valuations!

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  1. […] you start thinking that I am really a permabear, I suggest you read a couple of my posts (here and here) that I wrote sometime in December 2011…the time when stocks were about to go down the drain and […]

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