Investors who were willing to buy every dip for months together seem to have lost the will to buy last week. “There is no hurry to buy now,” was what a usually FOMO-driven investor said on Friday. He was inclined to let the market find its floor and then consider buying.
But this market is seeing several stocks turn very attractive in just a week. Over the coming days, the buying opportunities could become far more attractive. But investors seem to have given up. Almost.
What the markets taught us over the decades is that a near-term bottom forms exactly around the time investors give up. The coming week should see the markets dealing with fear in a way it hasn’t had to for a long while.
While global news flows will grow fears in people’s minds, domestic valuations will become very attractive. Undervaluation is likely to surface in numerous growth stocks. The only question before every investor is what he should be doing now.
What the individual investor does now is far more important than what the broader market does. Most investors generally fail to focus on what they need to do in such times. Instead, they keep looking at what the market is doing even while they do nothing.
Focusing on investing in the right places at reasonable valuations is what every individual must do in times like now. The good news is that we are spoilt for choice.
The most important thing to avoid is – to miss and sit out such a correction.
