As I write this the exchanges have halted trading as Indices have hit lower 10% ckt brkrs.
Funds sell-off......FIIs pull-out......Asian Markets sliding........Global Markets in the red.....Tech indicators all going awry......blah! blah! blah!....
What we've been witnessing over the past week & more is a demonstration of one of the basic tenets of investing in the stock markets.......understand well that the market is a herd of buyers & sellers who utterly disregard the most basic principles of individualistic human behaviour.
So we have it now & here........mob mentality....herd culture....call it what you will but you too have to jump over the precipice following the herd..... the only way is down, down & down over the edge....the trick here is to keep one's mind from going over the edge too.....that's when the herd splits up again into individuals.......pull up short.... scratch their heads...put on thinking caps once again....start to reason out......drool over low-prices.....bargain hunt amid the spoils.....and finally restore sanity to the proceedings. To use stock market jargon, that should start the bull run afresh.
Those among us who were wise enough to pull up short of the precipice may regard all of the above as pure
BULL. Can't blame them though.... in a blood bath such as we have been recently & still witnessing, some do come through relatively unscathed, albeit rather fortuitously I'd say.
Then again......as Isaac Newton proved "All that goes up must come down"........and not necessarily by the same score but rather complying with other branches of physics I suppose, "All that comes down will go up".
Hang in there guys............there's a new dawn everyday........could be just round the corner for all we know. With all technical indicators smashed & all so-called support lines mercilessly breached, we do have to maintain hope based on pure & solid fundamentals & economic indicators at large where the outlook is still positive.