Shankar Sharma shares his mantra to be immune to bear markets

Sharma, a big believer in smallcap stocks, advises to invest in 25-50 stocks to keep risks minimum.

Bulls are riding a market high but there is no dearth of investors who dread a sudden bear phase in the market. Celebrated investor Shankar Sharma believes there is only one way to be immune to a bear market.

“The only way to be immune to a bear market, is to have so much unleveraged, liquid wealth, that even a 50 percent fall doesn't dent your life and lifestyle,” said Sharma, in a tweet.

He added that investors should shoot for this goal in 2024.

Also read: Fed's stance change to boost flows, smallcaps remain attractive: Shankar Sharma

Notably, market experts have been advising investors to trade in the the market with their own wealth, rather than resorting to leveraged trading, which refers to the trading done on debt. The trading undertaken on borrowed money is one of the biggest pitfalls while trading in the market, analysts say.

Also read: Avoid pitfalls of risky derivatives or frequent trading in markets in 2024: NSE's Ashish Chauhan

Sharma, a big believer in smallcap stocks, advises to invest in 25-50 stocks to keep risks minimum. He believes that smallcaps, which rose massively in 2021, will continue their run.

“I think we are very strongly placed and will do very well in 2024. The smallcap rally has a lot of legs,” he told Moneycontrol in an interview earlier this month.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.