A sharp correction across the board is just what the doctor ordered. Corrections like these test investors’ conviction in equity as an asset class. They also reward investors who have the patience to participate in such corrections.
Opportunity knocks on the doors of those who are willing to carry their conviction forward and act concertedly to buy stocks which fall during such corrections. This correction was not quite expected by most investors. It happened at a time when investors were getting ready for year-end festivities. It seems to be very broad-based with widespread retail participation. Obviously, most investors who are selling off in this correction are showing a lack of patience, conviction, and courage.
Corrections like these allow every investor the opportunity to change for the better and improve their investment performance. The only way to do that is to progressively scale up your positions during such fire sales. Nobody knows how long such corrections will last and how markets will come out of the fear gripping them. But it is important for an investor to make use of the opportunity. Especially because valuations are in favour and investment objectives achievable.
The last week of the calendar year promises to be the most exciting. 2022 goes out on a note of hyperactivity.