The sensex has fallen more than 4000 points over the last week which i am told is the worst capitulation since 2009 crisis . All sectors excepting a few have fallen very significantly.
The oil and gas sectors of the economy showed what the power of one really means. A 1 Rs absorbtion of the fuel price into the psu financials impacted their market cap by over 1 LAKH CRORE! An impact showing how policy decisions being changed can change significant market trends.. one of the many that this government and some of the governing bodies have done over the last one year ( AMS list, FPI requirements, RBI and bandhan bank , RBI and Yes bank, il&fs to name just a few).
Uncertainties are never liked by markets and its participants.. and uncertainty in policy and communication seem to be the norm with knee jerk reactions killing of retail investor wealth by 50-60% in a day!
However today with such large falls, it is a great time to start putting any money you have ( for long term ) to good use by buying stocks .. large caps and making a nice profit over the next few years.
Again.. take out your money as per the asset allocation balance ( with equity dropping your debt to equity ratio might have gone haywire) and look to invest in quality stocks ( preferably large caps).
Making use of these falls to build a strong portfolio.. thats simplefinancialsense
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