End of the Bull Market?

We have been reading and hearing about the end of the bull market. When markets crash, all kind of analysts come out of the woodwork. Prophets of doom are everywhere. We have seen this before. In the year 2008, the nifty fell 65% to 2400. The profits assured us that the market is gone forever. Much to their surprise, 11 years later the market is actually four times higher. We can keep on repeating these examples.

Markets will fall, even during bull markets. These are corrections and are as inevitable as the sunshine, rain day, and night.

As traders, we never know the intensity of these corrections. We cannot know. Anyone who can know what the future will bring this is a remarkable personality and we are not so.

In fact, we believe, only God knows what the future is about. Some analysts claim they know the future and good for them. We have no such claims, and we do not know what the future holds is.

Our view is: we are in a bull market. Within this bull market, we will have any corrections. Some of these corrections can be quite intense, giving the impression that we are actually in a bear market. The long term investor must understand that these corrections will end soon enough, and be patient with his long term investments.

We must point out that we are talking about the overall market. The market as we refer to is primarily the Nifty 50. We explained this because these ideas may or may not apply to individual stocks. If an investor has purchased a highly speculative stock in the Mid Cap and Small Cap group, with questionable promoters, the rules and assurances of long term investing may not apply to such investments.

But if you are a wise investor, investing either in the nifty itself or in blue chips, you will face these periodic setbacks, but will end up as a big winner.