Grit And Courage: The Need Of The Hour
This time playing Holi required no ‘gulal’ as the bloodshed in the markets had sprayed ample red colour on all. The markets have bled like never before. India is not in isolation. In fact, the entire world is reeling under a massive sell-off driven by two major factors: the global spread of the dreaded Coronavirus and now crude oil. I would like you to pay attention to the editorial headlines that we ran in our previous issues post Coronavirus having had its first casualty in the world i.e. on January 9, 2020. The first issue in this series was pre-budget.
Editorial Headlines
Issue Volume 35 No. 04: January 20 ............... Euphoria is Welcome, But Play Safe!
Issue Volume 35 No. 05: February 03 .............. A Virus in the Driver’s Seat!
Issue Volume 35 No. 06: February 17 .............. Patience has its Rewards
Issue Volume 35 No. 07: March 02 .................. Caution is the Watchword
As you can see, we had started going on a back-foot and into a watchful mode understanding that the Coronavirus epidemic was going to be bigger than the world anticipated. Almost a month later, the world has begun to understand the full gravity of the situation. Having claimed that, we honestly did miss on the crude oil issue which has come as a bolt from the blue. So, while we had recently started advising you to start cherry-picking quality stocks since the market is low, the message now is to do the same but stagger the purchase over more weeks.
Yes, at the moment the market is reeling under tremendous pessimism. That is understood. However, I would like to reassure my fellow readers that there is no need to let this derail your confidence or your belief and faith in the positive growth story that is going to be seen in this decade. Yes, the year 2020 may get distorted owing to these unexpected jolts. However, if you can hold beyond one year, then just stay put. Ignore all the negativity, cut down on watching your portfolio often and remain vigilant to slowly and steadily keep picking up winning stocks. We at our end will keep serving you with our research and findings to help you on this journey. There is nothing to worry! Stay strong, stay courageous!
Meanwhile, our cover story talks about the slump in crude oil prices and how it is a boon for some of the listed companies. Sustained lower prices for crude oil is definitely not good for the global economy but if the crude oil price stays below USD 40 per barrel much longer then India can save substantial amount of money which can be used for various developmental projects and also for stimulating the economy. In our other special stories, we have touched upon the chemical sector as an emerging hot opportunity for long-term investors while the special story on VIX covers the basics of the volatility index and aims to guide investors. Another story identifies a ray of hope in the hammered down automobile and automotive components sector.
Do note that a few years down the road when we will look back at the scary events of today, they will look like a blip – an insignificant volatility in the index chart moving skywards.
RAJESH V PADODE
Managing Director & Editor