A bright future ahead with this correction for the Indian markets

Updated: Aug 11, 2020

When Japan hosted the Olympics in 1960, it was a very weak country and was skeptical about even hosting the Olympics. By the time the Olympics ended companies like Toyota, Sony, Honda, etc had become household names across the entire globe and then started the longest and the biggest Bull run in the history of the Stock Markets. From the year 1964 to 1989, the Nikkie 225 Japanese Index grew by 29x and if we ragard the USDJPY currency rates, the rally was effectively over 100x.

Here are current valuations of some of the big American names versus Jio:

  • Jio: $65 Billion

  • Uber: $59 Billion

  • Zoom: $49 Billion

  • Spotify: $36 Billion

  • Snapchat: $25 Billion

  • Twitter: $25 Billion

There is a shift in the demand across various sectors in the markets and the entire world is giving importance to it now and recognizing the potential of Indian companies and the Indian consumer base. Powerful campaigns like Make In India and Digital India have boosted this growth. If you even look at the SENSEX, since the 2009 bull run, the markets hardly doubled and currently they have halved. There is still a lot of potentials and international companies are realizing this potential with the long term and broader perspective.

With a 130 crore population, managing a GDP growth of 6% on an average is easy, and investing in the markets at current levels would definitely provide great results in the long term. This correction which we're witnessing amid the COVID-19 pandemic in the long term is very healthy for the markets and gives us an excellent buying opportunity to build up positions with the long term timeframe. Select quality stocks in companies that have a unique business model and that have continued to bring innovations in their industry to prepare for the long term and hold on to your investments rather than selling them on some profits when the markets rise back again. This is the ultimate strategy to build a large corpus and has made many billionaires successful.

#investing #portfoliobuilding

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