October 5, 2018

Blood on the streets?

Somewhere I heard someone say with this correction there is blood on the streets.

I disagree.

First, retail has to be big time long in the markets. Eg. sell your flat and invest in stocks so you can buy 2 flats in a year. Your next door aunty should give you awesome tips. This is not happening.

Second, index should double pretty fast. I have seen the index doubling in 3 months. The current generation of mutual fund managers has NOT seen this. These are the guys asking you to be 100% invested in so and so fund while they focus on FDs.

But times have changed so index doubling in 2-3 years will be a big thing. This has not happened so far.

Third, for blood on the streets, investors should lose heavily. Economy has to contract, jobs must be lost and brokerages should shut down. I have seen days where a brokerage sacks employees and GMs/ Veeps lose their jobs and default big time on their EMIs. This is not happening. May happen in the future.

As of now his is a small correction.

So just relax and chill.


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