"You make most of the money in a bear market, you just don't realize it at that time"
History has witnessed quality stocks giving heavy comeback after the correction phase. Let’s take a look at some quality comebacks from good companies during some past bear phases or strong corrections over 40-50%.
There have been three major Bear Phases in the markets where the benchmark SENSEX has corrected by over 40-50% from its highest peak point before the fall started.
These stock picks are from a selection of stocks that witnessed over 70% correction from their life-time highs.
In all three instances of bear phase, these glorious stocks have given tremendous comeback in subsequent 1-year returns.
History tends to repeat itself in the stock markets and going be history, there are glorious opportunities to pick quality stocks at very cheap prices.
Since the prices have already corrected by a heavy amount, the sooner you take an entry the better. As recovery starts, you will not be able to accurately predict correct and price to enter these stock picks.
STOCK BEHAVIOUR POST-1992 BEAR PHASE
STOCK BEHAVIOUR POST-2000 BEAR PHASE
STOCK BEHAVIOUR POST-2008 BEAR PHASE
Hence we believe it is the correct time to begin investing in good quality stocks with a long-term horizon.
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