Vijay Kedia, MD of Kedia Securities, has a simple message for retail investors during the current market downturn: stay calm and don’t make hasty decisions.
Kedia shared that he is fully invested and has no spare money to put into the market. Even if he finds a new investment idea, he would need to sell some of his existing stocks, which he is not in a hurry to do.
When asked about advice for retail investors who are shaken by the market’s recent fall, Kedia emphasized that now is not the time to rush into buying. He pointed out that today’s market drop is just a reaction to the exuberant rise of the previous day. The dramatic swings are a natural part of the market’s behavior.
Kedia believes that the unexpected election results caused the market’s miscalculations. He noted that the consensus was wrong, leading to today’s correction. However, he remains hopeful that if the government remains stable, significant reforms could be on the horizon, which would benefit the market.
Kedia advised investors to be patient and not try to catch the market bottom. Instead, he suggested staying put and waiting for the dust to settle. He argued that even if investors buy stocks at a slightly higher price later, it would still be better than rushing in now and potentially facing more losses.
For those sitting on cash with a 3-4 year investment horizon, Kedia recommended assessing their own comfort with potential short-term losses before making any moves. If they are comfortable with the risk, they can consider buying now. If not, it’s better to wait for the market to stabilize.
In summary, Kedia’s advice to retail investors is to remain calm, avoid adventurous moves, and focus on the long-term picture.
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