Why RED is color of Opportunity?
Why RED is color of Opportunity On August 5th, global markets experienced a crash, affecting economies in countries such as the US, Japan, and India. This significant downturn, often termed as "bloodbath," is not unprecedented, nor will it be the last. My aim here isn't to investigate why markets fallen; experts have already provided their analyses. Instead, I intend to shed light on how investors like us should react in such scenarios. Should we panic and sell? Before offering my perspective, let's review market behaviour over the past 10-15 years. Revisiting past events: In 2008-09, the peak Sensex reached 21,206. The collapse of Lehman Brothers and the Satyam scandal led to a market drop, hitting a low to 7,697—a decline of 63.7% . To put it simply , an investment of INR 100,000 would have fallen to approximately INR 37,000. However, within 1.5 to 2 years (by 2010-11), the peak recovered to 21,108,—an increase of 174% from its low. Moving forward to 2015...