Bear Market Are Best Time To Make Portfolio For Retirement.

Yes it is bear market.No doubt bear market give pain but only to those who are in immediate need of cash .But it is better in that case also to manage with minimum sell (by postponing unnecassary expenses )that to of weakest stocks of your portfolio.Avoid to touch Gems of your portfolio. This will prove to be only paper loss in long term for these stocks.EVERY ONE PLAN FOR RETIREMENT. BEAR MARKET ARE BEST TO START MAKING OF RETIREMENT PORTFOLIO. So if you have not started for your retirement planning yet,start it immiditely. If you have already started,pl strenghten it as you will be able to fortfy your portfolio with your systematic investments now.I have seen many bear markets,but in next bear market,prices are significantly higher than previous bear market.I know many four digits strong stocks now which were 30% of present value in 2008.More over if I go to bear market of before that many of these four digits stocks were available in two digits.Invest in large cap or NIFTY or Sensex stocks ( without metals,commodities, PSUs,utilities including telecom,infra &reality, airlines as these are always avoid stocks),you will see that prices are always significantly higher in sectors like FMCG,Pharma,pvt Bank,NBFC and many more sectors. As always posted by me ,please bank on 1.3 billion Great India consumers, they will take care of your stock performance.Come out of fear and start investing systematically directly if you have knowlge or in mutual fund SIPs.Always remember stock market is Voting machine in short term but weighing machine in long term.You can always find out if your company performance has changed permanently to bad with price correction,then you need to come out of that stock.If this is just stock price correction without any change in fundamentals ,then it is buying opprtunity .There is no guaranty that market may not go down further,but from my experince I can say you are going to make money if you start investing systematically now.I am already strenghing my retirement planning as I may plan retirement after 5 years and I AM CONSIDERING THIS FALL AS GOD SENT LAST CHANCE FOR MY BIG BANG RETIREMENT .Forget about Capital appreciation from present lows, I am expecting increased dividend yields from from fresh buying to take care of my future expenses after retirement.For me Bear Market is just technical name of Buying Opportunity.Strength of my Portfolio lies in my buying in last bear markets.For me BEAR means Buy Equity After Reduction.

 

Very good points only problem is that investors not have fresh funds. All funds got investment in bull period. Nobody saw bear market coming. So all talk of investing in bear market is good for theory only

 

@Srouta Mukherjee - Majorty of investers have regular alternate fresh income,so they can always deploy that .But if any body not having fresh income at all may just wait to pass the Strom.Portfolio will recover and still give respectable returns.In long term there will be slight difference of return.Those who don't have fresh funds to deploy but are having good portfolio may still make aprox 15% CAGR returns and those who may deploy additional funds on correction may ends up aprox 18%.So both may end with higher return than many other assets classes in long term of 10 year or more.Returns are just indicative and every post here is just for discussion.No doubt investers must be alert when investing at record highs,but in my view those who consider themselves unlucky on being traped by investing at highest point of record high but are invested in good stocks ,will certainly make money more than debt in long term of 10 years or more .All good stocks and market keep on making new life time high in every 10 years with significant CAGR gain. This happens only in India,as India is 1.3 billion strong consumers country. There is no reason to panic today if you are investing for tomorrow.

 

yes kharb ji ,
This is best time to start investment in good fundamental stocks , slowly invest in every fall and hold for medium to long term holding purpose , we are all know that 2008 crash recovery story , like same in every crash , but only quality stocks will perform sucess stories in bull market again ....

 

Yes once the market identifies poor stocks it is hard for them to recover. As they say form "form is temporary but class is permanent."

 

https://www.incademy.com/course/index.htm?CorCode=inc1015&ginPtrCode=10002

 

thinking of retirement in bear markets with regard to investing is a class apart thinking. hats off @kharb . you are a gem of this thread. we are really proud to have you.

can we also find those stocks that will make retirement life financially sound?
i mean stocks with good fundamentals and available cheap in this ongoing bear market which can give 15-18% cagr (more than fd, ppf etc).

 

i will start with my favourite retirement picks to earn 15-18%. not a recommendation . make decision yourself to buy or not.
1.MCX
2.TCI
3.ABFRL
4.NIIT
Happy retirement life.
retire like this
friends share your thoughts and picks.

 

Great picks for retirement.
I am sure you will have a wealthy retirement.
I can already visualise your retired life. Sitting on a poolside chair of a holiday resort with a plate of munchies by your side and a glass of champagne in your hand

 

Thanks friend @Parin Gala for appreciation.i wish you the same.

which are your picks?

 

I am not sure if there is any stock which I would like to hold on till retirement. My retirement is like almost 35-40 years away. I don't know if I would find a stock which I would like to hold for so long. My simple strategy is to use the stock market as a tool to amplify my pace of earnings so that my retirement would be wealthy. I would keep juggling with stocks with a max view of 4-5 years per stock pick.
Use corrections/bear markets to buy into quality names and use bull markets to book profit. That's my simple strategy.
Don't marry the stock for decades. Flirt with it for a few years.

 

I feel the days of holding stocks for ever are gone. Globalization, regulation, technology and change in peoples consumption patterns are playing havoc to a corporate's bottom line.

1.The safe havens in the consumption space - P&G, HLL, Nestle, Colgate are being impacted a by new player in the market - Pathanjali who is positioning themselves as more healthy, indian, less costly and organic

2. The big IT behemoths - TCS, Wipro, Infy are all under attack from the new digital transformation revolution and the more agile IT startups. The body shopping mode of IT servicing model is also under attack

3.The indian navaratnas of yesterday including BHEL are all under the impact of cheaper import alternates. They still give good dividend but not the same levels of growth

4. Pharma - Not a safe haven anymore with the cloud of FDA's and other regulations which have put the industry under a cloud

5. Commodity players are regularly impacted by government regulation, environmental safeguards and global rise and falls in consumption.

In such a volatile world economy it would be best to identify stocks which have a good growth potential, clean balance sheets, good management & hold them on for only their respective sun shine or growth periods. Once they have provided their best it would be best to move on to greener pastures if the next phase of growth for the companies is many more years away.

 

this chart tells you the relevance of long term investing.

 

This kind of thinking process is the EDGE of long term investor.Ask Mr Kharb.?

 

I am not getting what you are inferring to.

I am not saying concept of long term holdings is completely gone. But only that you cant just sleep over your investments after investing, due to fast changing environmental impacts.

 

change is faster than in old times. so the point is relevant.

 

We most of the time under esitmate power behind leaders. Leaders have different DNA another name of which is work culture and quality of leadership. Leadership never change so fast .It us easy for new entity to create leadership in new emerging sector. But it is very difficult to displace established leaders. It happens but very slowly.

Can you find out average age of Sensex,NIFTY or BSE 100 compnies inclusion in that index to substainite your view..From that you and all of us may get clearity.