After touching a high of 29000 in Sept, currently market is at 26000 levels which means a healthy 9% correction. Infact, this is a good time to enter the markets with a 1 year and 3 year time horizon.
Here is the reason –
Historically, if you see, whenever market has fallen by 10%, it has generated good returns in the next 1 year and 3 year horizon except in Jan 2008 when the Sensex was trading at very high valuation of around 27 times its earnings.
In the current scenario markets are trading at a reasonable valuation of around 20 times and with the improvement in various macroeconomic indicators like lower inflation, strong reforms, improving GDP, passage of GST bill, etc will have a very positive impact on markets over next 2 to 3 years.
Such corrections are a part and parcel of an equity bull market and should be viewed with optimism and used as an opportunity to enter the markets at lower levels.
nice article
21 Dec 2024 | Our Article |
After touching a high of 29000 in Sept, currently market is at 26000 levels which means a healthy 9% correction. Infact, this is a good time to enter the markets with a 1 year and 3 year time horizon.
Here is the reason –
Historically, if you see, whenever market has fallen by 10%, it has generated good returns in the next 1 year and 3 year horizon except in Jan 2008 when the Sensex was trading at very high valuation of around 27 times its earnings.
In the current scenario markets are trading at a reasonable valuation of around 20 times and with the improvement in various macroeconomic indicators like lower inflation, strong reforms, improving GDP, passage of GST bill, etc will have a very positive impact on markets over next 2 to 3 years.
Such corrections are a part and parcel of an equity bull market and should be viewed with optimism and used as an opportunity to enter the markets at lower levels.
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