The state of current stock market volatility
“The market crashed 600 points again today, let us buy some more !”, cheered my friend Darshan while I was entering the office.
” The feeling I have right now is pretty similar to the feeling I first had when I was entering the famous(or infamous) fashion street of Pune in my first year of engineering”, I said to Darshan and both of us broke into laughter.
I am no trading guru, but I aspire to be a great investor so I make it a point to keep evaluating companies (stocks) while the markets are within their usual volatility and I discuss my ideas with Darshan from time to time. We have a mental list of companies that we want to buy someday when one or some of them come to an affordable price.
The last couple of weeks were slightly different though. Almost all the companies that we had in our mental watchlist were trading at such low valuations that we were baffled. We could not decide what to buy and how much.
Once in a few months, the stock market gives you an opportunity that gets you excited. This is the time you have to put all the research you have done over the months into action.
Bottom line is, it’s a very good time to be a stock investor. While most of the people are busy crying over the virtual losses they have made in last week, I have a very positive feeling about this. This, like many crashes before, too shall pass. It might take a day, month or a year but it will make both of us rich one day ( Hopefully 😛 ).