Sick of purchasing the dip? Three ways to survive in a bear market as an investor March 06 :
The buy-the-dip technique presents difficulties for investors because markets are still erratic. It is advised to allocate assets,concentrate on safe stocks, and exercise patience. To successfully traverse the bear market,experts advise combining stocks with other assets and keeping a long-term outlook.
The buy-the-dip strategy,which propelled individual investors during the COVID-19 pandemic,is currently facing criticism as stock market bulls attempt to recover from five months of unrelenting drops.What will happen now that the Nifty PE has fallen below 20 for the first time in thirty-two months and valuations are returning to normal?
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The Sensex’s 740-point spike on Wednesday and the BSE Smallcap index’s 4% recovery over the previous two days have raised hopes that the market may have reached a bottom. A possible turning moment is approaching, according to important technical indicators such as the 14-week RSI, extreme breadth readings, FII long-short ratios, and seasonality trends.
But there is still skepticism. Kotak Institutional Equities warns that, whether viewed historically or in absolute terms, significant market segments continue to seem pricey.
“(1) The cat may already be dead, (2) the cat will likely be dead if dropped from a sufficient height—despite its fabled nine lives, and (3) the image will be too ghastly to imagine,” warns Kotak’s Sanjeev Prasad, a warning to anybody looking for a comeback in “narrative” equities.