Its ironical that many inexperienced investors invest when the market is on a high- they often invest too late. I can recall everybody investing in IREDA in 2024, when it was 284. IRFC was 217. Both in July, '24. If you observed that they appeared grossly inflated, they looked at you like you were being a wet blanked, to be politely ignored. Also, you could be told that IREDA and IRFC were different. Market had discovered them. Those were the heydays of PSU stocks.
In contrast, everybody is afraid these days. We invest when the market falls slightly. Then when it falls in a cascade, we lose the nerve. The abyss seems bottomless. Like the ad says, ‘dar sabko lagta hai, gala sabka sookhta hai’.
But when you see that L&T is down from 4418 on the 23rd Feb '26 to 3342 today, 23rd March, and then you read the statement of L&T management, “The company said over 95% of its project sites in West Asia are functioning normally. Only a small number of sites have been temporarily paused as a precaution, with no evacuation of personnel,” you are compelled to think something is awry. (Please also seehttps://www.business-standard.com/markets/news/larsen-toubro-falls-22-in-march-so-far-here-s-what-the-analyst-suggest-126032300287_1.html).
L&T is just an example. Of course, no recommendation. Bank nifty has fallen today. So has the pharma index.
If they have any connection with the Iran-US war, I am not aware.
So, yes, when aditya.lathe says, “Stocks can continue to trend downward for no reason, despite them being hugely undervalued even after a prolonged bear market,” he is being eminently sensible.
But then his observation would apply to all purchases during a bear phase, and not merely to buy on margin. As [Cshar] (Profile - Cshar - ValuePickr Forum) says,
So, it seems to me that standing on the sidelines at a time like this goes against my instinct. Is there a fear of loss, yes. Only a few thousand more because I have bought by using my shares as margin.
I am grateful to all who helped me in my journey. I will surely share the results. We learn together. Often from differing sources. Equally often with different results.
The stocks mentioned are just examples. No recommendation for and against.
I am invested in L&T. Made after the recent fall.