The Sensex and the Nifty opened sharply lower today due to a combination of factors i.e the government decision to withdraw Rs 1,000 and Rs 500 notes and increasing probability of Donald Trump winning the US Presidential election spooked investors who feared a tough and uncertain time again for the economy and the market.
The Sensex was down over 1,500 points (5.5%) at open while Nifty was down 505 points (6%).All the 30 stocks were down in the dumps as panic spread the markets on a totally surprise moves by the government on the currency issue and lead established by US presidential candidate Donald Trump over favourite Hillary Clinton. Though the gap has closed down at the time of writing this article Donald trump has won 232 seats vs 209 seats for Hillary Clinton.
So what should investors do when the market falls? Run away from the markets?. No it is actually time to accumulate quality stocks and smile all the way to the bank. While these are inherent negatives for the market the real reason for the market correcting is one word “Valuations”. When valuations go overboard the markets tend to react negatively and these negatives form the reason for the correction.
We had clearly written last time that the markets may correct given the steep valuations and a correction is due and had asked our clients to book 50% profits and increase your cash levels. Today we had proved that our assumption is turning true. We would like to recall few of our last write up on the markets below. We had written” Coming to the question of how we are going to protect you from a market fall we would like to remind you that we had already asked our clients to part book 50% profits during the surgical strikes which has brought geopolitical concerns in the near term. This profit booking would have enhanced your cash levels and would help us to go in and buy when the markets correct. It is better to play safe and take advantage of market correction rather than staying 100% invested and see your portfolio value dwindle. We would keep you posted on what to buy at the appropriate time. So our investors need to stay calm when the markets correct and follow our instructions to strike rich dividends”.
So we request you to hold on the existing shares and we will guide you at to which stocks to buy in this correction. Please follow our instructions and most importantly not to panic. Just stay cool and follow our instructions which will make you to laugh all the way to the bank. Call us at +91-8553585156 mobile number to subscribe to our value picks package which had delivered 53% returns in just 6 months time.