Some days ago while reading an article, I understood that India has the largest number of Bitcoin investors, around 10 crores!! Now thats a huuuggee number!! Next is the USA with around 3 crore Bitcoin investors. And the average age of these Indian Bitcoin investors is just 24.

While this news definitely was surprising to me, I did not give two hoots to it. For I follow the philosophy of "to each its own". I do not understand Bitcoin, so I am no expert to comment on it. But since I do not understand how Bitcoin operates, I am happy to stay away from it and not invest even a dime in it.

What I do understand a bit is about investing in Stocks, Mutual Funds and Bonds. While the US celebrated Thanksgiving on Thursday and then yesterday there was a Black Friday Sale , the Indian Equity markets celebrated its own Black Friday Sale yesterday. All major indices including the Nifty and Bank Nifty were down more than 2% and this downtrend had been coming for quite sometime now.

This major correction is likely to cause further selling in the Markets and pulling them down even further. This will be more aggravated by the discovery of a new Covid strain in South Africa and neighboring countries. Today there are news about many countries imposing new restrictions in Air Travel. Number of infections are going up alarmingly across Europe. Like it has happened in the past, retail investors will now completely exit the stock markets to minimize their losses and will remain happy investing in Bank deposits. They are unlikely to return soon to stock market and stock investing.

"Buy when others are fearful, Sell when others are greedy" is a famous maxim in Stock investing. But it is easier said than done. Thats why only the patient and smart investors who were sitting on the sidelines will now start buying quality stocks at cheaper valuations. This is the time now to reenter the stock market on technical confirmations and a good enough margin of safety. ( for me, margin of safety implies investing money which I do not require in the short term and any drop below my buy price is not going to give me sleepless nights). And once you buy, a good strategy is to hold the stocks for as long as possible. As Charlie Munger and Warren Buffet had once said "Our favorite holding period (of any stock) is forever"

So to sum it up, lap up quality stocks or mutual funds when there is fear everywhere around us. When greed sets in i.e. when the stock markets start going up as if there is no tomo, stay on the sidelines and stay content with your monthly SIPs in Mutual Funds. We have time and again seen ( as early as yesterday), the stock markets can be a dangerous place to seek thrill. If you are seeking thrill, go to Essel world, Imagica or Disneyland.

Happy Investing!!

PC: Personal archives

PS: I know most folks do not like to read about investing or understand investing. It is simply too boring for them. Lets make this more boring with some technical stuff here: all major trendlines, Fibonacci and Simple Moving Average supports were broken/ breached yesterday. Selling volumes have been extremely high. RSI even on weekly timeframes has turned bearish.

PS2: If you survived reading till here, then congratulations!! This blog did not bore you to death. Related reading Stocks and Shocks , dont Break The Chain and saneSEX @60K

PS3: As always, the blog title is a pun.