{"id":1117,"date":"2024-07-12T12:39:09","date_gmt":"2024-07-12T12:39:09","guid":{"rendered":"https:\/\/cedcapital.in\/?p=1117"},"modified":"2024-07-12T12:42:37","modified_gmt":"2024-07-12T12:42:37","slug":"volatility-and-bargains-reminder-during-bear-markets","status":"publish","type":"post","link":"https:\/\/cedcapital.in\/?p=1117","title":{"rendered":"Volatility and Bargains (reminder during bear markets)"},"content":{"rendered":"<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">The key to discovering bargains is an understanding of value\/ worth of a business. Prices often over or undershoot conservatively assessed value for various reasons. Future uncertainty and over reaction to continuing developments is one of the sources of this volatility.<\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">Since the launch of the BSE Sensex in 1986, India has witnessed five events of seismic proportions \u2013 the 1991 Economic Liberalisation, the 1997-98 Asian Crisis, the 2000 dot-com bubble, the 2008 sub-prime crisis and the 2020 Covid-19 pandemic. Market movements during each of those times were characterised by very high volatility \u2013 rising and falling over 50% in short term. Even after these upheavals the Sensex has compounded by 16%\u00a0 annually (including dividends) in the last 32 years.<\/span><\/p>\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 14pt;\">One key factor in climbing these walls of worries has been <strong>human tendency to fight, survive, adapt and prosper<\/strong>. The need to keep improving one\u2019s life conditions amidst all hardships will always exist \u2013 more so in India today as it stands at under 2500$ per capita GDP. So long India remains a <strong>democratic<\/strong> nation and a <strong>free market<\/strong> economy, good businesses that can cater to the demand of a prospering India profitably will prosper.\u00a0 All we have to do is buy sensibly without overpaying. Volatile periods will be an opportunity to do just that.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The key to discovering bargains is an understanding of value\/ worth of a business. Prices often over or undershoot conservatively assessed value for various reasons. Future uncertainty and over reaction to continuing developments is one of the sources of this volatility. Since the launch of the BSE Sensex in 1986, India has witnessed five events [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,20],"tags":[],"class_list":["post-1117","post","type-post","status-publish","format-standard","hentry","category-investment-psychology","category-market-cycles"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1117"}],"version-history":[{"count":4,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1117\/revisions"}],"predecessor-version":[{"id":1121,"href":"https:\/\/cedcapital.in\/index.php?rest_route=\/wp\/v2\/posts\/1117\/revisions\/1121"}],"wp:attachment":[{"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cedcapital.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}