Let's understand the Importance of Staying Invested

Today’s Daily Byte

We’ve had five down months in a row now. This happened in the mid-90s the last time we had five down months in a row. I think six down months in a row have not happened for the last many decades. And if March were to be a down month, it would be one of the rarest of rare occurrences. I am reasonably sanguine that March will not be a down month, but we have started on a poor note. However, the entire month of March is still there, so I’m not really worried about that.

We are extremely oversold. FIIs are, of course, still selling, and people are still very, very fearful. The commentary from experts is all over the place, with predictions ranging from 18,000, 16,000, to 19,000. Even experts are now throwing in the towel in a big way, and the narrative is gradually becoming extremely fearful. That is usually when some sort of intermediate bottoms happen. It hasn’t happened yet, but one must remain hopeful about that.

Is this the worst fall since COVID on small caps? In this video, we’ll take a data-oriented approach to compare the current situation with past falls.

Reading Time : 4 Minutes

Play the long game and be above average

This interesting chart tells you the different returns in the US markets for each year in the last approximately 100 years. There are about 100 data points on this chart, varying from very high 50% one-year gains to as low as 44-45% in a down year.. . . . .

Reading Time : 3 Minutes

Rare to see a correction without increase in VIX

Nifty 50 and the volatility index are shown in this chart sourced from DSP Netra. The orange line represents the total return index of Nifty 50, while the black line represents the VIX (volatility index) of NSE. The VIX measures market volatility, and typically, during major market crashes, we see sharp spikes in this index. . . . .

Reading Time : 2 Minutes