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Updated on: Tuesday, December 21, 2021, 04:25 PM IST

Teji Mandi Explains: 2020 selloff nightmare resurfaces again

Teji Mandi Explains: 2020 selloff nightmare resurfaces again
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Teji Mandi Explains: 2020 selloff nightmare resurfaces again |

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Déjà vu is hitting every retail investor once again. 2020 is reminiscent of all the horrific events from the recent past. Let’s read up!

What’s Happening?

The stock market is mirroring events from the past that everybody wanted to forget. The scare of Omicron, the new COVID-19 variant, has started making its run, and this time it's even scarier. The Western world is terrified. Hence, the majority of foreign investors were pulling out their capital from the Indian markets. Meanwhile, rising inflation, hawkish central banks and increasing COVID-19 cases have slowed the growth not just in the markets but also in the businesses.

Market experts believe another lockdown could massively hurt the economic recovery. It is just been a while since the global economy started taking baby steps to normalisation. While some believe that FIIs will soon turn buyers when the valuations become attractive. Until then, there will be corrections.

Why Should You Care?

The majority of investors lose patience and sell their stocks in losses when they see the deep red hole. The bigger question is, how bad could it get? So far, the Omicron virus is affecting thousands but hasn’t caused severe illness.

The whole narrative of COVID-19 has pushed markets below, resulting in massive losses. While all this chaos continues, it’s important to remember that the market did recover from its losses back in 2020. This means there is an underlying opportunity in all this selling madness. Some market experts believe that the situation will be under-control from January 2022 and may go on to deliver over 15% return from there.

Several days back, when the market began to crumble, the reason was foreign investors. As worries of Omicron rose, retail investors also started to pull out their funds resulting in a further meltdown of the market.

What Lies Ahead?

The market is going through a correction phase where investors can go on a buying spree. The majority of stocks will be available at a cheaper price. Rather than panicking, investors can use this market phase to their benefit and buy big companies. Top researchers have said that life will have to be balanced with COVID-19 and its new variants now. We will have to live it, and if that’s the case, then this is the best opportunity to invest and double the money later.

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Published on: Tuesday, December 21, 2021, 04:25 PM IST
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