Significant Volatility to Persist
The only way you can handle volatility in the stock market is by accepting that it will exist forever. Due to their volatile nature, stocks are deemed to be risky.
From war to skyrocketing oil prices, from a pandemic to lockdowns, from natural disasters to man-made disasters, something will affect the stock markets now and then. So if a 1-2% fall in the Nifty 50 steals a good night’s sleep from you, you should come to terms with it as soon as possible!
Also, research by the US firm BlackRock showed that the best days for stocks tend to closely follow the worst days!
Long-Term Return Opportunities Remain Intact
The price chart of various stock market indices in India and worldwide undoubtedly confirms that the long-term return opportunities remain intact!
What is required for a company’s earnings to grow? Its consumer demand. And India is a country with a population of more than 140 crores!
A strive to become self-independent or aatmanirbhar, many production-linked incentive (PLI) schemes have been launched by the government to incentivise the production of goods and services within the country.
China will be the next USA, and India will be the next China. So wait for things to fall in place!
How Should Investors Look at the Market?
Investors should view and judge the stock markets not by their daily moves but by having a long-term view. Only then will one be able to perceive it as an ocean of opportunities.
If you try to time the market and do not remain invested during some of the best days of the markets, your returns will be modest!