Is it time to quit the markets?

Today’s Daily Byte

Nifty is absolutely flat today. Nifty has been sort of hovering around the 22,500 mark for quite some time now. Every time Nifty approaches a particular support, it does look like maybe this is the time for a probable bounce. But, as you can clearly see, this 40 DMA mark has been a very crucial resistance. Every time there is an attempt to get past this mark, immediately there is a sharp sell-off, pushing the markets further below. Exactly the same thing happened around the start of February, and we are once again at a lower low that has been established.

Nifty is currently in its fifth consecutive month of negative closing. So, is it time to quit markets? This is the kind of question we get regularly on our emails, across multiple forums. Newer investors are very anxious about what to do, especially in a scenario like this.

Reading Time : 7 Minutes

SIP Stoppage Ratio at crazy high levels !

SIP stoppage ratio is a simple but powerful indicator of investor sentiment in the mutual fund industry. It is calculated by dividing the number of SIPs that are being discontinued by the number of new SIPs that are being started. If this ratio crosses 100, it means more SIPs are being closed than new ones being opened, indicating fear or caution in the market. If the ratio is around 50, it suggests that for every SIP being closed, two new SIPs are being initiated, which is a sign of strong investor confidence. . . . .

Reading Time : 4 Minutes

History of the markets can give you comfort

Charlie Bilello has compiled a fascinating table listing all bear markets in the US over the last 100 years. It covers the duration of each bear market, the length of accompanying recessions, the S&P 500 levels at the start and end, and the percentage decline during each period. Some of the most severe crashes stand out, such as the Great Depression in 1929, where the index lost a staggering 86%. Other major downturns include the 1932-33 crash (-40%), the 1937-38 collapse (-54%), the 1973-74 recession (-49.9%), the dot-com crash (-50%), the 2008 Global Financial Crisis (-57%), and the more recent COVID crash (-35%). .

Reading Time : 3 Minutes