Equity Markets and the sudden growth of investment opportunities

The current financial year has seen a lot of movement in the market, and globally many countries have been in a challenging position to stabilize the market movement. The pandemic has sent a strong message to the investors worldwide, and many have got wary of the volatility of the stocks. Stocks are one the best source of investment that gives higher returns in a desired time frame.

Whether you are a long-term investor or short term, stocks can be everyone’s favorite when it comes to investing the money for good returns. Depending upon the business models and growing capability of the stocks in the changing market, you can decide whether to keep it short or wait for higher returns. It completely depends upon the risk appetite of the investor, and one should always invest after doing good research about the stocks.

There have been over 10 lakh demat accounts opened in the past 4 months and people are shifting their traditional investments from Gold, Fixed deposits, Real estates to the stock market and this sudden shift has been a real boost for the Indian economy. Millennials have been aggressively trading into the stock market may it be intraday, short term or long term and had a spark within them to earn money in this time. Multiple stocks have surpassed their previous highs in the last few months and have given higher returns to the investors. A strong investment position in the market with the global sentiment has led these stocks to skyrocket. Even though the current position has made many investors skeptical about the investment but investing in these stocks can bring good returns.

There have been several instances in the past where the market has recovered significantly after a huge crash:

Event Market Fall Post 3 years Return
Global Recession (1986-88) -40.8% +199.5%
India Financial Crisis(1990-91) -39% +300%
Harshad Mehta Scam(1992-93) -56% +90%
Dot-Com Bubble (2000-01) -57% +110.6%
Central Elections Results(2004) -32% +230%
Financial Crisis(2008) -60% +120%
European Sovereign Debt Crisis(2010-11) -11% +80%

The Market has already recovered about 15-20 % since the fall. Hundreds and Thousands of people are waiting for the market to correct since the sudden recovery. The Indian Markets have been de-linked with the current economy since the past few months and everyone is waiting for the so called correction where they can invest their money for good returns.

The real question that baffles most people currently is, Is there actually going to be a correction in the stock market or has the correction already taken place?