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Market Voices: Experts chip in on price dips as global markets experience carnage

Entrepreneur Ankur Warikoo also observed how such market dips were more so a test of your integrity, commitment, and dedication to your financial health. Periodic, impermanent dips in your investment value should not rattle you, but rather encourage you to understand the dynamics of the market and know the reasons better. That will help you visualize your bigger financial dream.

February 24, 2022 / 05:21 PM IST

Russia on February 24 mounted a full-scale military attack and invasion on Ukraine, marking a "dark hour" in European history.

Just as reports of the death of about 40 people and 10 civilians trickled in, alongside news of blasts and explosions in various cities such as Kyiv and troops marching across cities such as Chernihiv, Kharkiv, and Luhansk regions in the east and Odessa and Mariupol in the south, global markets also experienced horrible bloodshed and carnage. Most markets were significantly down during the day.

India's BSE Sensex tumbled more than 2,700 points in the wake of the brewing crisis, and Nifty went down by 815 points. Many popular investing experts weighed in during the day on how to manage money during market slumps. Take a look at a few of them:

Alok Jain, SEBI Research Analyst and Founder, Weekend Investing tweeted: "If you were waiting for a dip to add, this is a dip! Whether this dip deepens or not, nobody can say. But this is a dip."

Also read: Russia-Ukraine News Live Updates

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The best way to approach a market dip is to see it as a great opportunity to expand your portfolio and add viable companies to it, instead of simply panic-selling your stocks. This is the time when the stock prices of good companies with solid fundamentals are generally down and thus, available at fair prices for you to buy since there is a general sentiment of fear in the market.

Even contra investor Lalit Rathi notes this in his tweet. "For those new to markets, don't worry a bit. We have continued to progress and will do so in the coming decade. Take this as a Contra opportunity to buy decent quality stocks in 2 or more tranches. Despite 100s of events in the last decade, we marched forward," he added.

Contra investing legend Warren Buffet considers price dips as a chance to increase your investment repertoire when he says that "Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

Sandip Sabharwal, Investment advisor, and Research analyst tweeted "Timing the Markets and then time in the markets is the mantra. Otherwise many get scared out of their long-term investments as they fall 30-50% Don't believe #BAAP PMS fund managers who say buy every day. The next 3 weeks at some stage will give great opportunities."

Buffett also underlines this when he says "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes".

And while that might come across as an extremely strong stance, staying put in the market consistently and patiently, without giving up your long-term financial goals just as short-term market volatilities and uncertainties hit your investment, bringing about negative changes in your portfolio is the way to financial success in the market!

The Oracle of Omaha also believes so, calling "trying to time the market" a waste of time and hazardous to investment success.

Entrepreneur Ankur Warikoo also observed how such market dips were more so a test of your integrity, commitment, and dedication to your financial health. Periodic, impermanent dips in your investment value should not rattle you, but rather encourage you to understand the dynamics of the market and know the reasons better. That will help you visualize your bigger financial dream. "How you react when your investment value dips, will tell you a lot about your current relationship with money. Spend time understanding it".

Crude oil also surpassed various benchmarks today, breaching the $105/barrel mark as Russia attacked Ukraine, erupting concerns about imminent disruptions in global energy supply chains. Notably, Russia is the third-largest oil producer and second-largest oil exporter globally.

While analysts warned of inflationary pressures and that crude oil prices will remain around $100 till other options like OPEC do not enter the picture, SEBI registered advisory Aveek Mitra expressed slight optimism and cautioned to keep an eye out on crude as events unfurl by tweeting: "Crude crossed $100 almost after 8 years since July '14! It remained above $ 100 for the most period between 2011-14 which created inflation & political churning in India. Crude price may come down much faster this time but note that India's budget math is based on $70-75 per barrel."



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